The most noteworthy event is that an early Bitcoin whale from the "Satoshi era," after 14 years of silence, has liquidated over 80,000 Bitcoins worth approximately $9 billion through Galaxy Digital. This massive transaction did not cause significant market turmoil; instead, it highlighted a remarkable increase in Bitcoin market liquidity. Meanwhile, other Bitcoin and Ethereum whales are also continuously increasing their holdings or transferring assets. What does this collective awakening and asset transfer of these whales signify? Is it a signal of a market correction, or the prologue to a new round of institutional cycles?
- Early Bitcoin Whale Sells: $9 Billion Transaction Does Not Trigger Market Panic
The world of Bitcoin has added another legendary large transaction. Recently, the well-known cryptocurrency financial services company Galaxy Digital announced that they assisted an early Bitcoin investor from the "Satoshi era" in liquidating over 80,000 Bitcoins, with a written amount of approximately $9 billion.
Mystery of the Whale's Identity: According to Galaxy Digital's press release, this ancient whale began accumulating positions in 2010 and has long locked up assets for over 14 years. Now, they are adjusting their asset structure as part of a broader estate planning strategy. The identities of both the buyer and seller have not been disclosed.
Market Reaction is Mild: Compared to earlier years when the market would crash due to whale sell-offs, this time the market only experienced brief fluctuations, symbolizing that Bitcoin liquidity has reached a higher level. The overall order volume accounted for nearly 10% of the day's on-chain trading volume, with the spot price only momentarily dropping by 3% to 4%, from about $118,000 to a low of $115,000, before recovering to above $117,000 a few hours later.
Galaxy Digital's Professional Operations: In the face of such a large sell-off, Galaxy Digital's professional operations played a crucial role. They placed the whale client's Bitcoins in institutional-grade custody and segmented the 80,000 BTC into orders based on price ranges, bringing in multiple exchanges and OTC liquidity pools. They also utilized over-the-counter (OTC) trading to obscure order book pressure, preventing large orders from directly entering the public market and causing panic selling.
On-Chain Monitoring: Blockchain analysis firms Arkham Intelligence and Lookonchain observed that several long-dormant addresses first moved their assets into Galaxy Digital's custody wallet before directing them to exchanges, which provided the market with some insight into the flow of funds, reducing uncertainty.
Challenges of Estate Planning: This $9 billion sum, when viewed from the perspective of the global personal wealth rankings, could rank around 220th. In this transaction, Bitcoin has been converted into traceable fiat currency and deposited into a trust account. If this is indeed for estate planning, it is certainly more convenient than dealing with crypto assets. This also highlights the complexity of crypto assets in estate planning and tax handling, as well as the practical need to convert them into traditional financial assets.
- Continued Activity of Other Bitcoin Whales: Accumulation and Potential Sell-Offs
In addition to the aforementioned massive sell-off, other Bitcoin whales are also remaining active.
Ancient Whale Sells Again: On August 1, on-chain analyst @ai_9684xtpa monitored that an "ancient whale holding 3,963 BTC for 14.5 years" sold another 180 BTC. Over the past week, they have reportedly sold 330 BTC, worth about $39.04 million, with a cost as low as $0.37. Half an hour ago, they transferred 180 BTC (approximately $21.25 million) to a market maker-associated address, which has interacted with several institutions including B2C2, Galaxy, and Coinbase.
Strategy Indicates Accumulation: On July 27, Strategy founder Michael Saylor released information related to Bitcoin Tracker and stated, "It all started with Bitcoin worth $250 million." According to previous patterns, Strategy always discloses information about increasing Bitcoin holdings the day after related news is released, indicating that they may soon resume Bitcoin purchases.
Treasury Strategy Entities Collectively Accumulate: On July 27, @btcNLNico reported that this week, Bitcoin treasury strategy entities collectively increased their holdings by 29,500 BTC. Among them, eight newly announced treasury strategy entities increased their holdings by 20,368 BTC, while 24 companies added 9,183 BTC. Additionally, 10 companies announced future Bitcoin treasury strategies, planning to utilize $132 million.
- Activity of Ethereum Whales: New Funds Flowing In and Institutional Staking
The activity of Ethereum whales has also significantly increased, indicating strong demand for ETH from new funds.
New Wallets Make Large Purchases: On July 31, Lookonchain monitored that three newly created wallet addresses recently accumulated 73,821 ETH, worth approximately $283 million. Furthermore, since July 9, a total of 11 new wallets have accumulated 722,152 ETH, with a total value of about $2.77 billion.
FTX/Alameda Research Stakes ETH: On July 31, @EmberCN monitored that a wallet from FTX/Alameda Research staked 20,736 ETH (approximately $7.896 million) in Ethereum PoS.
Institutional Addresses Receive ETH: On July 31, Onchain Lens reported that a whale or institutional address received 32,855 ETH from FalconX, worth approximately $124 million. This wallet currently holds a total of 113,029 ETH, valued at about $430 million. Meanwhile, @EmberCN monitored that a new address received 39,652 ETH from Galaxy Digital, worth about $15.2 million. It is still unclear whether this is a new address for an institution accumulating ETH or a new address for institutions like SBET.
- Market Interpretation Behind Whale Movements
The transfer of billions of dollars by whales, combined with the new audit requirements enforced by the "Guidance and Establishment of the U.S. Stablecoin National Innovation Act" (GENIUS Act), has raised concerns among industry observers about a potential Bitcoin correction.
"Bubble" Theory: Financial analyst and WhaleWire CEO Jacob King stated in a post on X on July 18: "This alone can burst the biggest bubble and scam in financial history: Bitcoin. It is entirely supported by fake money printed out of thin air."
Historical Perspective: However, analysts from Bitfinex stated, "The movement of dormant whales does not always precede significant market adjustments," adding, "While this whale movement is noteworthy, it should not overshadow the constructive momentum the crypto industry has gained in terms of regulation."
Institutional Adoption: Analysts suggest that the long-term whales "re-engaging with the network" may signal a broader shift, preparing for the next institutional cycle rather than a bearish turning point. Ki Young Ju, founder and CEO of blockchain analysis platform CryptoQuant, stated that recent whale transfers indicate that "the Bitcoin cycle theory has failed." He pointed out, "In the last cycle, whales sold to retail investors. This time, old whales are selling their stocks to new long-term whales."
Conclusion:
The collective awakening of ancient Bitcoin and Ethereum whales and the large transfer of assets vividly illustrate the current reshaping of the crypto market landscape. The transfer of $9 billion worth of Bitcoin did not trigger market panic, highlighting the significant increase in Bitcoin market liquidity and the ability of institutions to handle large transactions. The movements of these whales are not merely sell signals; they may indicate the beginning of a new round of institutional adoption cycles, where "old whales sell their stocks to new long-term whales." As institutional adoption scales up, the Bitcoin cycle theory may be failing, and the crypto market is moving towards a more mature and institutionalized phase.
Related Articles: Bitcoin (BTC) Continues to Fluctuate in Range, a Breakout Trend is Brewing
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Original Article: “What’s Going On with the Collective Awakening and Massive Asset Transfer of Ancient Bitcoin Whales?”
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