Galaxy Digital Offloads 80,000 BTC—Is a Bitcoin Crash Coming?

Galaxy Digital Unloads 80,000 BTC: Bitcoin Faces Pressure as Ethereum Gains Momentum

In a stunning development that’s shaking the global cryptocurrency markets, Galaxy Digital has confirmed the completion of one of the largest Bitcoin transactions in history—selling 80,000 BTC valued at over $9 billion. The digital asset manager disclosed that the sale was executed on behalf of a dormant Bitcoin whale, whose holdings date back to April 2011, a time when Bitcoin was trading at a mere $0.78.

The sale, finalized on July 18, involved the movement of the 80,000 BTC—strategically split across eight wallets for over a decade—into various exchanges, fueling widespread speculation and a marked shift in market sentiment.

Source: X

A Dormant Giant Awakens

The dormant whale's reactivation has ignited intense scrutiny. Blockchain analytics firm Lookonchain traced the funds and verified that the original holder never moved the coins for over 13 years. Then suddenly, on July 18, the whale initiated the transfer, and Galaxy Digital confirmed that it facilitated the sales over multiple days.

Source: X

Galaxy noted the transaction was part of an "estate planning strategy," though this has done little to quell concerns that the move might signal broader uncertainty among early crypto investors. The transaction’s timing—coinciding with Bitcoin’s price dip from an all-time high of $122,000 to around $115,000—has many questioning whether the sale was coordinated to engineer a more accessible price point for new investors.

Market Repercussions: BTC Price Faces Key Resistance

Bitcoin's price has responded with visible stress. As of the latest trading session, BTC is hovering around $117,429, still below the crucial resistance level of $118,500–$119,500, a barrier that has repeatedly denied upward movement. Analysts warn that unless Bitcoin decisively breaks through the $120,000 ceiling, the possibility of a broader correction is real and pressing.

Source: TradingView

Technical indicators show an RSI of 58.86, suggesting a neutral stance—neither oversold nor strongly bullish. However, the psychological support level at $100,000 is now under threat. Should this threshold break, analysts predict potential drops to $95,000 or even as low as $90,000.

The overall market sentiment is cautious. With the estimated probability of a significant price correction standing at 65%, institutional and retail investors alike are preparing for heightened volatility.

Ethereum Steals the Spotlight

While Bitcoin deals with its bearish headwinds, Ethereum appears to be attracting renewed attention. Following the Bitcoin dump, data from Lookonchain reveals a surprising shift: large crypto holders—commonly referred to as "whales"—are reallocating assets into ETH at an unprecedented pace.

AguilaTrades, a prominent trader known for aggressive strategies, recently closed a long BTC position and moved into Ethereum using 25x leverage. The trader now holds 17,500 ETH, valued at over $65 million. Despite facing a substantial liquidation of 720 ETH worth $83.3 million on July 25, Ethereum’s allure remains strong.

Between July 9 and July 25, whale accumulation of ETH reached eye-popping levels:

• Three new wallets bought a combined 74,207 ETH, worth approximately $273 million

• Eight wallets acquired 540,460 ETH, totaling nearly $2 billion

• On-chain analyst Ali Martinez reported a cumulative purchase of 1.13 million ETH—valued at $4.18 billion—by major wallets in just two weeks

This data signals a massive confidence shift, as big players start treating Ethereum not just as a hedge, but as a potential new leader in the digital asset space.

Changing Tides in Institutional Sentiment

Although stalwarts like BlackRock and ARK Invest continue to retain their Bitcoin holdings, many institutional analysts suggest Ethereum may soon overtake Bitcoin in terms of growth trajectory and innovation appeal.

Industry voices like Eric Trump have issued bold Ethereum price forecasts, placing targets near $8,000. Even more aggressively, crypto pioneer Arthur Hayes—co-founder of BitMEX—believes Ethereum could touch $10,000 in the next market cycle, driven by expanding decentralized finance (DeFi) and the upcoming Ethereum Layer 2 scalability rollouts.

The Galaxy Digital transaction may have accelerated this shift, unintentionally or otherwise.

The Road Ahead: Can Bitcoin Hold?

The Bitcoin community now faces a pivotal moment. Historically, BTC has proven resilient through countless market corrections and whale movements. Yet this instance feels different—primarily because the action originates from one of the most longstanding holders in the ecosystem.

This isn't a typical day-trading event or short-term panic sell. It's a monumental transfer from an early adopter who may represent a broader segment of legacy Bitcoin holders evaluating new directions or retirement strategies.

The coming weeks will reveal if Bitcoin can stabilize above $100,000 and reclaim upward momentum. Otherwise, the pressure from Ethereum and other emerging contenders could finally erode Bitcoin's long-held dominance in the crypto market.

Conclusion

The $9 billion liquidation orchestrated by Galaxy Digital marks a historic moment for the cryptocurrency market. As Ethereum absorbs investor momentum and big money pivots its focus, Bitcoin’s future hinges on its ability to rebound swiftly from this whale-triggered shock.

Whether this event represents the start of a new era in crypto hierarchy or simply a temporary rebalancing of power, one thing is certain: the digital asset landscape is rapidly evolving, and the players at the top are now being tested more than ever.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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