25.07.2025 18:14

A significant sell-off in Bitcoin impacted the market Friday morning, with billions of dollars worth of the cryptocurrency moved to exchanges. Analysts observed a considerable transfer of approximately $3.7 billion in Bitcoin, attributed in part to Galaxy Digital, a major player in crypto financial services, leading to heightened selling pressure.

This substantial movement of Bitcoin, totaling 35,568 BTC within a 10-hour period, included a considerable portion sold at a loss by short-term holders. Specifically, data suggests 26,100 BTC, some originating from Galaxy Digital’s holdings, were sold by these short-term investors, resulting in further market volatility. It's important to note that, given Galaxy Digital's role in asset management and custody, the transferred Bitcoin might not represent the firm's own funds.

The consequences of this selling wave were immediate and pronounced. Bitcoin's price experienced a decline of 1.8%, briefly dipping to $115,000 before recovering slightly to $116,365. This price fluctuation occurred alongside a dramatic 37% surge in 24-hour trading volume, reaching a staggering $131.6 billion. Furthermore, over $531 million in Bitcoin options positions were liquidated, primarily long positions, suggesting a potential market correction.

While the massive sell-off caused considerable market disruption, some analysts viewed the liquidation of options positions as a positive indicator, potentially laying the groundwork for a more stable market environment in the long term. The increased trading volume, although partially reflecting panic selling, indicated heightened market activity. However, the substantial transfer of funds to exchanges, coupled with losses incurred by short-term holders, underscores the inherent volatility within the cryptocurrency market. Analysts are closely monitoring the situation for further developments.