Dormant 2011 BTC Wallet Sells 60K, Fueling Market Sell Fears
A long-dormant Bitcoin wallet from 2011 reactivated in early July, moving a total of 60,009 BTC (roughly $7.1 billion). On July 4, it transferred 20,000 BTC, and on July 14 another 40,009 BTC, all routed through Galaxy Digital’s OTC desk. Lookonchain data shows Galaxy immediately sent 6,000 BTC to Binance and Bybit to access deeper spot liquidity. Bitcoin dipped over 6% from its $123,000 all-time high to near $115,700 before stabilizing around $117,500, echoing fears of a repeat of the 2024 Mt. Gox sell-off but under more controlled conditions. With 40,000 BTC still under Galaxy’s handle, traders warn of further exchange order-book sales that could test bids at $112,000–$115,000. Mixed US June CPI data and a stronger dollar added volatility. Strong institutional and OTC demand may cushion some selling, but the remaining BTC overhang still poses a short-term bearish risk for market stability.
Bearish
The reactivation of a 2011-dormant wallet moving 60K BTC—and the potential for further exchange sales—adds significant sell pressure. Although Galaxy Digital’s managed OTC distribution helps limit slippage, trader sentiment is bearish due to the remaining 40K BTC overhang. Mixed economic data and dollar strength compound volatility, making a short-term downward bias likely. In the long term, institutional and OTC demand could absorb supply, but immediate price action is expected to remain under pressure.