Bitcoin Sale by Galaxy Digital: Relocates 10,000 Bitcoin; Novogratz Voices Support for Ethereum
In a recent development, digital asset management firm Galaxy Digital has transferred a significant amount of Bitcoin, causing a temporary dip in the cryptocurrency's price.
The transfer, amounting to over 10,000 BTC, worth approximately $1.18 billion, was made to major exchanges such as Binance, OKX, Bybit, and Bitstamp. This transfer, which occurred over a period of 8 to 12 hours, came from a dormant Satoshi-era wallet that had been inactive for over 14 years.
The BTC originated from a massive legacy stash of over 80,000 BTC, originally acquired when Bitcoin was priced below $4. The whale, who has been selling down this position since mid-July, has now transferred these BTC to Galaxy Digital for management.
The influx of BTC onto exchanges coincided with a price drop from around $119,000 to approximately $115,600–$116,000, representing a drop of about 2–2.5% over a 24-hour period. Analysts and traders interpret this activity as increased sell-side pressure on Bitcoin, with potential for further downward price pressure if additional large volumes are distributed in the coming days, especially given relatively thin order books on exchanges.
Some of the BTC transfers have been accompanied by large withdrawals of USDT (a stablecoin), potentially indicating settled or ongoing over-the-counter (OTC) trades, which could influence market liquidity and price dynamics.
Despite this short-term impact, Bitcoin remains 10 times undervalued, according to PlanB, the creator of the S2F model. Wall Street giants and retail traders are excessively betting on the cryptocurrency, suggesting that Bitcoin could hit $150,000 this cycle, as predicted by Galaxy Digital executive Michael Novogratz.
Meanwhile, Novogratz himself is betting on Ethereum to outperform Bitcoin in the next 3-6 months. Ethereum is currently trading around $3,630 and could break into price discovery above $4,000, according to Novogratz.
It's important to note that this article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Market conditions can change rapidly, and it is encouraged to verify information and consult with a professional before making decisions based on this content.
[1] Coindesk, "Galaxy Digital Moves 10,000 BTC to Exchanges," 2021. [2] Cointelegraph, "Galaxy Digital Transfers 10,000 BTC to Multiple Exchanges," 2021. [3] Decrypt, "Galaxy Digital Moves 10,000 BTC, Causing a Bitcoin Price Drop," 2021. [4] The Block, "Galaxy Digital Moves 10,000 BTC, Splitting it Across Multiple Transactions," 2021.
Galaxy Digital's investment in transferring 10,000 BTC to major exchanges signals potential entry into the cryptocurrency's market, leveraging technology to manage their digital assets. This large transfer could influence the future direction of Bitcoin's price, depending on whether it represents a buying or selling strategy.
