Galaxy Digital Executes Massive 80,000 BTC Sale from Dormant Wallet, Impacting Market Volatility

Galaxy Digital recently announced that it sold 80,000 BTC (approximately $9 billion) on behalf of an anonymous early BTC holder. This sale has been identified as a potential catalyst for a short-term correction in Bitcoin's price. The firm stated that this transaction was executed by including a message in the metadata of the Bitcoin transactions, highlighting its significance. Galaxy Digital described the sale as one of the largest Bitcoin transactions ever, representing a notable "exit" for early investors from the Satoshi era, and framed it as part of the investor’s asset management strategy. Additionally, CryptoQuant CEO Koo Kyung reports that the 80,000 BTC originated from a wallet associated with MyBitcoin, a platform closed down in 2011 due to hacking. This wallet had been inactive since April 2011, four months before MyBitcoin's closure, and had remained dormant for 14 years. Koo suggests that the BTC likely belonged to either a hacker associated with MyBitcoin or its anonymous founder, Tom Williams. This incident underscores the ongoing influence of long-term forgotten Bitcoin holdings being unlocked and moved, which can impact market dynamics. The magnitude of this transfer indicates a possible shift in the holdings of early Bitcoin investors, prompting concerns about potential market volatility. It also raises questions about the motivations behind such a large sale and its implications for Bitcoin’s short-term trend.