Bitcoin News Today: Galaxy Digital's $1.18B Bitcoin Sell-Off Drives 2.7% Price Drop and $55B Market Cap Loss

Bitcoin’s benchmark cryptocurrency faced sharp downward pressure as Galaxy Digital executed a large-scale Bitcoin sell-off, triggering a 2.7% decline in the asset’s price. On-chain data revealed the firm transferred over 10,000 BTC—valued at $1.18 billion at the time—onto major exchanges within less than eight hours, according to wallet-tracking firm Lookonchain [1]. The transactions, distributed across Binance, Bybit, and OKX, coincided with Bitcoin’s drop from an intraday high of $119,000 to a low of $115,800, marking its weakest level in two weeks. The selloff erased approximately $55 billion from Bitcoin’s market capitalization in four hours, with price action mirroring the timing of exchange deposits [1].

The sell-off originated from a Satoshi-era whale address that reactivated this month, transferring 80,009 BTC in 10,000-coin tranches beginning on July 4. By July 18, 40,191 BTC—worth $4.8 billion—had been directed to Galaxy Digital, with analysts initially interpreting the move as a potential sale. The firm has since accelerated transactions, sending Bitcoin to exchanges “almost every minute” to liquidate the asset [1]. Despite the firm’s silence on the matter, on-chain activity suggests the selloff is ongoing, with over 2,850 BTC ($330 million) deposited on exchanges in the European morning session [1].

Galaxy Digital’s billionaire founder, Michael Novogratz, has not publicly commented on the transactions. The firm has also not filed a Form 8-K, which would be required to disclose significant balance-sheet adjustments. In a recent CNBC appearance, Novogratz reiterated his view that Ethereum could outperform Bitcoin in the coming months but provided no indication of the firm’s immediate selling plans [1]. Analysts remain divided on the motives behind the selloff. Autism Capital’s X post theorized the move could be client-driven, linked to a potential Saylor-related obligation, or a strategic shift toward Ethereum. Capriole Investments’ founder, Charles Edwards, noted the concurrent liquidation of 30,000 leveraged long positions on the dip, warning of short-term volatility despite long-term optimism. “Even if all 80,000 BTC are sold, consistent Treasury Company demand could absorb the supply within weeks,” Edwards stated [1].

Bitcoin closed at $115,476 at press time, having fallen below its 20-day exponential moving average. The market remains under pressure as Galaxy Digital reportedly retains over 27,000 BTC for potential future sales. Analysts caution that the pace of liquidation and counterparty responses will shape near-term price dynamics, though long-term fundamentals remain unchanged. The event underscores the outsized influence of institutional activity on crypto markets, where large-scale on-chain movements can rapidly translate to price swings.

Source: [1] [Bitcoin Price Bleeds As Galaxy Digital Unleashes $1.5 Billion Sell-Off] [https://www.newsbtc.com/bitcoin-news/bitcoin-price-bleeds-galaxy-digital-1-5-billion-sell-off/]