Bitcoin Drops to 2-Week Low on Galaxy Digital’s $1.5B BTC Sale
Bitcoin fell over $4,000 in 12 hours to reach a two-week low of $115,000 after Galaxy Digital sold roughly $1.5 billion in BTC. The sell-off began when the fund transferred 10,000 BTC (about $1.18B) to exchanges, converting the holdings to USDT. A subsequent deposit of 2,850 BTC took the total to $1.5B, according to on-chain analytics firm Lookonchain. The sudden liquidity spike drove Bitcoin’s dominance below 60% and intensified volatility. Over-leveraged traders suffered nearly $515 million in liquidations across derivatives platforms, with Bitcoin positions accounting for $143 million. More than 140,000 accounts were liquidated, including a single $17 million wipeout on OKX. Market participants should brace for continued short-term volatility, as large institutional sell-offs can trigger further price swings in Bitcoin.
Bearish
This news is bearish for the crypto market. A substantial institutional sell-off by Galaxy Digital increased supply in the market, driving Bitcoin’s price down to a two-week low. Large-scale liquidations, totaling over $515 million, indicate significant deleveraging by traders, which often exacerbates downward momentum. Similar events, such as major fund sell-offs in 2021, led to sharp price corrections and extended volatility. In the short term, continued selling pressure may push Bitcoin lower or keep it range-bound as market participants digest the increased supply and liquidations. In the long term, however, the market may stabilize once the sell-off concludes and demand absorbs the excess, potentially setting the stage for renewed buying. Traders should monitor liquidations and exchange inflows for signs of capitulation or recovery.