Recent movements in the cryptocurrency market have been dramatic, following a significant Bitcoin transaction involving Galaxy Digital. Bitcoin’s value plummeted to $115,080, the lowest it has seen in two weeks, largely due to Galaxy Digital’s maneuver of moving 10,000 BTC, amounting to roughly $1.18 billion, to various crypto exchanges.
How Did Galaxy Digital’s Massive Transfer Affect the Market?
The substantial transfer by Galaxy Digital occurred promptly at 07:26 Turkish time. According to data from Lookonchain, this activity, perceived by some experts as a strategy to cash in on previous gains, initiated a cascade of price fluctuations in Bitcoin.
Adding fuel to the fire, Galaxy Digital executed another hefty transfer of 2,850 BTC, valued at around $330 million, to exchanges shortly thereafter. This action compounded the market pressures, further driving down Bitcoin prices and making it challenging for recovery efforts to gain momentum. These sales dramatically increased market liquidity, favoring sellers over buyers.
What Consequences Did the Price Decline Have on Positions?
Apart from the impact of Galaxy Digital’s transactions, attention also turned to a prominent crypto figure known as AguilaTrades. This whale investor faced partial liquidation of a 20x leveraged long position, incurring a $2.1 million loss from a single transaction. Presently, this whale investor confronts a cumulative loss of $4 million, reducing their total portfolio value to $37 million.
CoinGlass data reports an overall liquidation of $706.66 million worth of positions within 24 hours, with an overwhelming $551.67 million being attributed to long positions. The mounting selling pressure, fueled by Galaxy Digital, has significantly threatened leveraged trading positions.
Key insights from this downturn include:
- Galaxy Digital spearheaded the disruption in Bitcoin pricing through strategic sales.
- Whale investors are experiencing sizable losses due to levered positions amid market volatility.
- A substantial increase in the liquidation of long positions contributed to wider market ramifications.
BTC continues to hover around $115,404, struggling to rise from its recent lows since July 10. As the market navigates these turbulent times, attention remains on how participants will respond to ongoing fluctuations prompted by such sizeable transfers.
