Bitcoin has come under renewed pressure in July, slipping back to the $115,000 range after peaking near recent highs. The drop comes amid a major sell-off linked to Galaxy Digital, as well as unusual activity from long-dormant Bitcoin wallets, some untouched for over a decade. While the fundamentals for Bitcoin remain strong, the sudden reactivation of old supply has shaken market confidence and introduced short-term uncertainty.
Galaxy Digital Sparks Market Jitters
One of the major triggers for Bitcoin’s recent slide is linked to Galaxy Digital, a crypto financial firm led by Mike Novogratz. Over a multi-day period, the company offloaded significant Bitcoin holdings, resulting in visible market impact.
Source: Lookonchain
According to blockchain analytics platform Lookonchain, Galaxy Digital deposited 2,850 BTC (worth around $330 million) to exchanges early on Friday alone. In total, more than 12,800 BTC (valued at $1.5 billion) was moved to exchanges within just 24 hours. This activity originated from a well-known Bitcoin whale address, which held 80,009 BTC, worth about $9.6 billion prior to the sell-off.
Source: Lookonchain
Transfers from this legendary wallet began on July 15 and were completed by July 18. On one of those days, more than 40,000 BTC was moved in a single transaction, shaking trader confidence and causing Bitcoin prices to dip further.
Although this heavy sell pressure initially caused sharp market reactions, some analysts believe the worst of the selling may now be over. Market watchers are now closely monitoring whether the market can stabilise or if more downside remains.
Dormant Bitcoin Wallets Wake After Years
In addition to Galaxy Digital’s moves, July has seen a wave of activity from Bitcoin wallets that have been inactive for year, even over a decade. This rare phenomenon has raised fears of further large sell-offs.
One standout case involves three wallets likely linked to the same owner, which moved a combined 10,606 BTC (worth around $1.26 billion). These wallets originally received their Bitcoin in December 2020, when BTC was priced at $18,803. At current prices, that’s a 6.3x gain, fuelling speculation that these holders may be preparing to take profits.
Source: Lookonchain
In another extraordinary case, a wallet that had been dormant for 14.5 years suddenly transferred 3,962 BTC (worth $468 million) this week. That wallet received its Bitcoin in January 2011, when the price was just $0.37 per coin making it one of the oldest reactivations ever recorded.
Source: Lookonchain
Earlier in July, yet another whale wallet moved 6,000 BTC ($649 million) after lying idle for six years. These moves suggest that long-term holders may be repositioning their assets, possibly anticipating further volatility or seeking to capitalise on high valuations.
Market Sentiment Turns Cautious
With Galaxy Digital’s offloading and dormant wallets stirring, trader sentiment has grown more cautious. Community discussions on X (formerly Twitter) are filled with speculation, particularly around the idea that Satoshi-era wallets (early Bitcoin adopters) may be preparing to sell during the next market rally.
Although the overall health of the Bitcoin network remains strong with mining activity, hash rate, and institutional interest all stable, the market appears to be entering a short-term phase of consolidation. Many traders are now focused on monitoring volatility, watching closely to determine whether selling pressure is finally easing.
Altcoin Season on the Horizon?
While Bitcoin struggles to regain momentum, altcoin traders are showing early signs of rotating capital into smaller cryptocurrencies. This shift is supported by a decline in Bitcoin’s dominance, which measures BTC’s share of the overall crypto market. The dominance metric fell from 64% to 60% between July 17 and July 21 before making a slight recovery to 61.55% by Friday.
Bitcoin Dominance. Source: TradingView
A declining dominance is one of the earliest indicators of an approaching altcoin season, where capital flows into altcoins, leading to faster gains in smaller assets. The Altcoin Season Index currently sits at 43, indicating that the crypto market is not yet in a full altseason. However, the rising trend suggests momentum may be building.
Altcoin Season Index. Source: Blockchain Center
Investors and analysts alike will be watching closely in the coming days to see if this trend continues. If Bitcoin stabilises and altcoins maintain their momentum, July’s volatility could mark the beginning of a broader shift in crypto market dynamics.
