Bitcoin Bounces Back: Galaxy Digital’s Massive BTC Sale Meets Strong Liquidity

Despite a recent downturn, Bitcoin is slowly regaining its footing after a massive sale by Galaxy Digital threatened to send the cryptocurrency into a deeper tailspin. The sale, which involved thousands of BTC, sparked initial fears of further losses, but strong liquidity has helped mitigate the price risk.

Galaxy Digital’s BTC Dump: A Closer Look

According to Blockchain Intelligence platform Lookonchain, Galaxy Digital recently moved nearly 30,000 BTC out of its wallets, valued at around $3.5 billion at current prices. The assets were transferred in waves, with most of them landing directly on stock exchanges like Binance, OKX, and Bitbit. This move was followed by the withdrawal of around $1.15 billion in USDT, indicating that the BTC had been sold.

The transfers were not entirely unexpected, as they follow earlier signs of activity connected to a whale wallet from Satoshi, which reappeared in early July after more than a decade. As reported by Crypto.News, the whale had moved almost half of its 80,000 BTC into new wallets, with another 40,000 landing in Galaxy Digital-controlled addresses.

Initial Fears and Market Reaction

Initially, the sales sparked fears of deeper losses for Bitcoin, but the market has since stabilized. The price of Bitcoin has recovered from earlier lows near $114,700 and is currently trading around $116,000, marking a decrease of 1.6% but also a significant bounce back.

The recovery is also buoyed by the launch of a new Bitcoin ETF, which has seen net inflows of around $227 million, breaking a three-day outflow streak. Meanwhile, Galaxy Digital still holds around 18,500 BTC, valued at around $1.38 billion, which could potentially lead to further sales.

On-Chain Analysis: Minimal Price Impact Expected

According to on-chain tracker Embercn, the sales have so far been a mixture of secondary market and over-the-counter transactions. This suggests that the final wave of sales will have a minimal impact on prices, as liquidity has already absorbed most of the sales pressure. With strong liquidity and a stable market, Bitcoin seems to be weathering the storm, at least for now.

As the cryptocurrency market continues to evolve, it’s clear that large-scale sales like Galaxy Digital’s can have significant effects on prices. However, the resilience of Bitcoin and the strength of market liquidity have helped mitigate the risks, and the cryptocurrency remains a major player in the digital asset space.