Galaxy Digital Dumps $1.18B in Bitcoin, Triggers 3% Price Decline
Bitcoin (BTC) fell 3% in the last 24 hours after Galaxy Digital dumped over 10,000 BTC, worth around $1.18 billion...
Quick overview
- Bitcoin fell 3% after Galaxy Digital sold over 10,000 BTC, worth approximately $1.18 billion, onto major exchanges.
- The sell-off triggered automated sell orders, causing Bitcoin to drop below key technical levels and leading to $646 million in liquidations across the crypto markets.
- Galaxy Digital's CEO hinted at a strategic shift towards Ethereum, suggesting it is better positioned for future growth compared to Bitcoin.
- Despite the market volatility, some analysts view the situation as a healthy reset rather than a long-term bearish trend.
Bitcoin (BTC) fell 3% in the last 24 hours after Galaxy Digital dumped over 10,000 BTC, worth around $1.18 billion, onto major exchanges like Binance and OKX. The sell-off, according to LookonChain data, is Galaxy’s largest single dump since they bought $2 billion in BTC from a Satoshi-era wallet.
This caused a big market move. According to CoinMarketCap, Bitcoin broke below its 7-day simple moving average ($118,257) and the 23.6% Fibonacci retracement level ($118,859) and triggered the automated sell orders. As a result, BTC price dropped fast and volatility was everywhere.
RSI and MACD histogram showed weakening bullish momentum. RSI was just above oversold and MACD histogram dropped to -166, indicating more downside. Traders are now watching $115,000 and $116,241 as key levels.
Market Reactions and Liquidations Surge
The price move caused a big reaction across the crypto markets. According to Coinglass, $646 million in crypto positions were liquidated in 24 hours. $152 million of that was from Bitcoin longs, many of whom got caught off guard by the speed of the drop.
Galaxy Digital withdrew $370 million in USDT after the dump, confirming they converted their BTC into stable assets. This is not a panic sell.
Key Points:
- 10,000+ BTC sold by Galaxy Digital
- $1.18B worth of BTC deposited to exchanges
- $646M liquidated across crypto markets
- BTC dominance fell 3%
- Derivatives open interest dropped 14%
Some think this is a healthy market reset rather than a long term bearish reversal, pointing to the modest change in derivatives open interest as a sign of cautious but ongoing investor engagement.
Ethereum on the Horizon
Galaxy Digital’s CEO, Mike Novogratz, hinted at a strategic shift towards Ethereum. In a recent CNBC interview, he said Ethereum is getting more institutional and the ecosystem is evolving. He mentioned ETH’s supply is getting tighter and demand is rising, and it’s better positioned for future growth than Bitcoin.That’s in line with the overall trend in institutional crypto portfolios which are being rebalanced in favor of Ethereum assets. Novogratz said Bitcoin is still a defensive play but his comments suggest the tide is shifting among the big players.
If this keeps going, Ethereum will soon challenge Bitcoin’s spot in high net worth investor portfolios as its use case in DeFi and smart contracts grows.
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