25.07.2025 08:47

Bitcoin experienced a significant price drop, plummeting over $4,000 in less than 12 hours. This sharp decline followed reports of a massive Bitcoin sell-off by Galaxy Digital, Mike Novogratz's firm, amounting to approximately $1.5 billion. The sudden downturn severely impacted heavily leveraged traders, resulting in widespread liquidations.

For the preceding week, Bitcoin had traded within a relatively narrow range between $117,000 and $120,000, following a retreat from its recent all-time high exceeding $123,000. Attempts to break above this resistance level on Wednesday and Thursday proved unsuccessful. However, the most recent rejection triggered a dramatic fall, pushing Bitcoin to its lowest point since July 11th, settling at $115,000. This substantial correction appears linked to Galaxy Digital's large-scale Bitcoin disposal.

According to data from Lookonchain, Galaxy Digital initially transferred 10,000 Bitcoin (approximately $1.18 billion at the time) to various cryptocurrency exchanges before subsequently withdrawing substantial amounts of Tether (USDT). Further analysis by Lookonchain revealed an additional deposit of 2,850 Bitcoin ($330 million), bringing the total value of the sold Bitcoin to roughly $1.5 billion. This significant selling pressure contributed to heightened market volatility.

This increased volatility had a devastating effect on leveraged traders, as evidenced by data from CoinGlass. Daily liquidations reached a staggering $515 million, with Bitcoin accounting for the largest share at $143 million. Over 140,000 traders experienced liquidations, highlighting the risk associated with highly leveraged positions in the volatile cryptocurrency market. The largest single liquidation occurred on the OKX exchange, although the precise details were not provided in the source material.