A significant Bitcoin transfer initiated by Galaxy Digital, originating from a wallet associated with a Satoshi-era holder, contributed to a sharp decline in the cryptocurrency’s price, leading to widespread market liquidations.
Galaxy Digital deposited 10,000 BTC (approximately $1.18 billion at the time) onto cryptocurrency exchanges. This substantial movement correlated with Bitcoin’s price falling abruptly to $115,125, marking its lowest level since early July.
The influx of Bitcoin represented significant selling pressure. Subsequently, an additional 2,850 BTC (valued around $330 million) from the same source was moved to exchange deposit addresses, amplifying market concerns.
The price downturn triggered severe leverage liquidations. Notable whale trader AguilaTrades incurred a $2.1 million liquidation on a highly leveraged long position, while still carrying an additional $4 million in unrealized losses on their remaining BTC holdings.
Overall market liquidations over the preceding 24 hours soared to $706.66 million according to Coinglass data. Long positions bore the brunt, accounting for $551.67 million of the total liquidated value.
This event underscores the market’s heightened sensitivity to large-scale transfers by influential holders like Galaxy Digital, demonstrating how such actions can exacerbate price volatility, accelerate declines, and significantly increase liquidation risks across leveraged positions.