Bitcoin Drops to $115,000 as Galaxy Digital Executes Massive Whale Wallet Sell-Off

Bitcoin has declined to the $115,000 range, moving further away from recent highs amid intense selling pressure linked to Galaxy Digital's multi-day liquidation from one of the largest known Bitcoin whale wallets.

Galaxy Digital Dumps $1.5 Billion Worth of Bitcoin

Blockchain analytics revealed that Galaxy Digital deposited 2,850 BTC worth $330 million to exchanges on Friday morning. This transaction is part of a larger pattern, with over 12,800 BTC valued at $1.5 billion moved to exchanges within just 24 hours.

The massive Bitcoin sell-off originated from a legendary whale address containing 80,009 BTC, worth approximately $9.6 billion before the liquidation began. This address started transferring coins to Galaxy Digital on July 15, completing the full transfer by July 18.

In a single day, over 40,000 BTC was moved, causing significant market concern among traders and investors. The substantial volume of Bitcoin being repositioned has created downward pressure on the cryptocurrency's price.

Dormant Bitcoin Wallets Become Active After Years

Adding to market uncertainty, several long-dormant Bitcoin wallets have suddenly reactivated in July. Three wallets, likely controlled by the same entity, moved 10,606 BTC worth $1.26 billion this week.

These wallets originally received their Bitcoin on December 13, 2020, when the price was $18,803. At current market prices, these holdings represent a 6.3x gain for the long-term holders.

Ancient Bitcoin Addresses Wake Up

One particularly notable wallet that remained dormant for 14.5 years transferred 3,962 BTC valued at $468 million to a new address. This wallet originally acquired Bitcoin at just $0.37 per coin in January 2011, making it one of the oldest addresses to reactivate recently.

Earlier in July, another wallet moved 6,000 BTC worth $649 million after remaining inactive for six years. These movements suggest long-term holders are repositioning their assets or preparing for potential exits.

Market Implications and Trader Sentiment

The reawakening of these aged wallets, combined with Galaxy Digital's liquidation activity, indicates a shifting dynamic in the cryptocurrency market. Old Bitcoin supply is being repositioned ahead of expected market volatility.

Community members have taken notice of the increased activity from Satoshi-era Bitcoin holders. Some speculate these early adopters may be preparing to exit their positions during the next bullish market phase.

Bitcoin Dominance Signals Potential Altcoin Season

As Bitcoin whales create market uncertainty, altcoin traders are signaling potential capital rotation that could trigger an altcoin season. This expectation aligns with a steep decline in Bitcoin dominance from 64% to 60% between July 17 and July 21.

The Bitcoin Dominance index attempted a modest recovery on Friday, reaching 61.55%. A falling dominance metric typically suggests investors are rotating capital from Bitcoin into alternative cryptocurrencies.

Altcoin Season Indicators

The Altcoin Season Index currently sits at 43, indicating the crypto market is not yet in full altseason. However, the rising trajectory supports the observed shift in market momentum away from Bitcoin.

This trend represents one of the earliest signs of an emerging altcoin season, where alternative cryptocurrencies typically outperform Bitcoin.

Outlook for Bitcoin Price

While Bitcoin's fundamental strengths remain intact, July's trend of whale movements has introduced fresh uncertainty into the short-term price outlook. Traders are closely monitoring market volatility to confirm whether the selling pressure has concluded.

Investors are hoping that fresh capital inflows can help lift Bitcoin back toward new all-time highs. The cryptocurrency market continues to demonstrate its sensitivity to large holder movements and institutional trading activities.

The combination of dormant wallet activations and institutional sell-offs highlights the ongoing maturation of the Bitcoin market, where large holders increasingly influence short-term price movements through their trading decisions.

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