Bitcoin has experienced renewed volatility and uncertainty as Galaxy Digital, a leading financial services firm in the digital asset space, completed a historic transaction that sent shockwaves through the market. The company executed the sale of over 80,000 BTC—valued at more than $9 billion—marking one of the largest notional Bitcoin transactions in crypto history. This massive transfer has not only triggered sharp price swings but also fueled speculation around the identity of the seller and the implications for the broader market.
CryptoQuant Founder and CEO, Ki Young Ju, added a deeper layer to the story by revealing that the transferred coins had been dormant for 14 years. According to Ju, these BTC originated from wallets once hosted by the now-defunct platform MyBitcoin, which collapsed in 2011. The sudden reactivation of these early-era coins has raised eyebrows across the crypto space, with some analysts questioning whether the original owner, a potential early miner or hacker, was involved in the sale.
Speculation has intensified as Ju noted that Galaxy Digital appears to have purchased the Bitcoin from this entity. However, there is uncertainty about whether thorough forensic checks were performed to confirm the legitimacy and origins of these coins. Such a massive transfer and sale have stirred concerns among traders about potential sell-offs and their impact on market sentiment.
The next few days are expected to be critical for Bitcoin as the market digests this development. While Bitcoin grapples with volatility, Ethereum (ETH) has started to outperform BTC, signaling a shift in dynamics. This divergence between major crypto assets may set the tone for the broader market in the coming weeks.
The 4-hour chart for Bitcoin shows that after briefly dipping below the 100 SMA (green) at $117,471, BTC found strong support near $115,724—a key horizontal level that has repeatedly acted as a defense zone. This bounce came as significant volume entered the market, signaling strong demand just below that level.
Now trading around $117,300, BTC has reclaimed the 100 SMA and is attempting to push back above the 50 SMA (blue), currently acting as short-term resistance near $118,118. A confirmed break and hold above this level could open the path for a retest of the range highs at $122,077, which remains the main resistance before any new all-time high attempt.
The consolidation structure that formed between $115,724 and $122,077 resembles a mid-cycle continuation pattern. This recent sweep of the lower range may have flushed out leveraged longs, allowing for a healthier reset before the next move. However, failure to hold the 100 SMA or another drop below $115,724 would invalidate the bullish setup and likely trigger deeper downside.
Featured image from Dall-E, chart from TradingView
