Bitcoin faced significant downward pressure early Tuesday following large-scale activity from a long-standing whale address. The OG wallet transferred thousands of coins to Galaxy Digital, prompting widespread market concern and triggering a sharp drop in price.
According to Lookonchain, the whale moved 7,843 BTC, valued at approximately $927 million, to Galaxy Digital. This came shortly after a previous transfer of 9,000 BTC, bringing the total to 16,843 BTC, worth over $2 billion. These transactions have raised fears of potential liquidation as Galaxy Digital continues to move the assets onto centralized exchanges.
Further reports show 2,000 BTC, estimated at $236 million, were deposited directly into Binance and Bybit. Such transfers are typically interpreted as a sign that the coins may be sold, increasing market supply and applying pressure on prices.
Bitcoin Price Action and Market Movement
The impact of the whale transactions was immediate on Bitcoin’s price. The flagship cryptocurrency dropped sharply to an intraday low of $116,218 before recovering modestly to $117,363.
The hourly chart revealed a deep red candle followed by a volume spike, suggesting panic selling and rapid position adjustments. A brief green candle emerged shortly after, showing some dip-buying, but the overall sentiment remained cautious.
CoinGlass data showed around $406 million in long liquidations within just four hours. This rapid wipeout of leveraged positions points to forced selling, which may have intensified the decline. A separate whale reacted by closing an extended position and flipping short, a move viewed by many as a strategic retreat amid a volatile environment.
Market Sentiment Shifts as Liquidations Surge
The broader market showed signs of retreat as trading volumes surged and sentiment turned defensive. Traders reacted quickly to the large inflows into exchanges, which were interpreted as sell signals.
Profit-taking also increased, indicating that many investors saw the recent highs as a potential local top. Short-term traders are recalibrating strategies amid rising uncertainty and whale-driven volatility.
Galaxy Digital’s actions remain closely watched as it continues handling large inflows of Bitcoin. Any additional sales or transfers may further influence short-term price direction.
Conclusion
The recent whale movement and resulting price drop have reignited volatility in the Bitcoin market. With significant holdings now flowing into exchanges, traders are preparing for further pressure and potential shifts in market dynamics.
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