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Bitcoin experienced a sharp price decline on Thursday after a massive transfer of dormant coins sent shockwaves through the market. According to on-chain analytics platform Lookonchain, Galaxy Digital moved over 10,000 Bitcoins—worth approximately $1.2 billion—to various cryptocurrency exchanges within just eight hours. The source of these coins has drawn particular attention: they originated from a Satoshi-era address, a rare type of wallet that had remained untouched for more than 14 years.
The reactivation of this long-dormant address earlier this month signaled potential movement, but the scale and speed of the latest transfer stunned market participants. The address was part of a larger stash—over 80,000 BTC—that had been quietly held since the early days of Bitcoin. Galaxy Digital’s receipt and subsequent dispersal of a portion of these coins raises questions about the intent behind the move, especially during a period of heightened volatility and record-high Bitcoin prices.
Bitcoin had recently climbed to new all-time highs above $122,000 before falling back below $119,000 on Thursday. The sudden liquidation of such a large amount of BTC, particularly from historically inactive addresses, triggered fear across the market. Within hours of the transfer, Bitcoin’s price dropped to under $116,000, eventually settling around $115,800 by Friday morning. This marks a decline of roughly 2% over the past 24 hours, according to data from CoinGecko.
Analysts believe that the timing of the transfer played a critical role in the market’s reaction. The sudden appearance of 10,000 Bitcoin on exchanges suggested the possibility of a selloff, either by Galaxy Digital or eventual recipients. Though there is no official confirmation that the coins were sold immediately, the mere act of moving such a substantial amount of BTC created a perception of increased supply pressure. In highly sentiment-driven markets like crypto, perception alone is often enough to move prices.
What makes this transfer particularly significant is the origin of the coins. Satoshi-era addresses are known for their historical importance and near-total dormancy. Coins from this era, typically mined or acquired during Bitcoin’s earliest days, are often considered lost or inaccessible. When such coins reenter circulation, they not only raise eyebrows due to their rarity but also spark speculation about the identity of the wallet’s owner. Some wonder if this move could be linked to early miners, insiders, or even entities close to Bitcoin’s mysterious creator, Satoshi Nakamoto.
Galaxy Digital’s role in this process adds another layer of intrigue. As a major institutional player in the crypto space, Galaxy is known for managing digital assets for both corporate and high-net-worth clients. The firm’s acquisition of the 80,000 BTC from the reactivated address is unclear in detail, but it likely involved over-the-counter arrangements. The 10,000 BTC moved to exchanges could represent a phased liquidity strategy, partial profit realization, or client-directed action.
The broader market, meanwhile, remains under pressure. Bitcoin’s recent rally above $122,000 had triggered bullish expectations, but the current dip has forced many traders to reassess short-term targets. The liquidation of leveraged long positions and the appearance of large coin transfers have created a tense environment. While the total crypto market cap remains steady above $2.3 trillion, the fear of further downside persists, especially as long-held BTC begins circulating again.
Notably, this is not the first instance in 2025 where reactivated dormant wallets have influenced market sentiment. Earlier this year, multiple Satoshi-era addresses were observed moving funds, coinciding with sudden price drops. These events have led to increased scrutiny of historical wallets and their potential to disrupt price stability, even when no major fundamental shifts occur.
Despite the immediate bearish sentiment, some analysts suggest the situation could present a long-term buying opportunity. The supply of Bitcoin remains capped at 21 million, with over 19.89 million already in circulation. Any temporary increase in exchange supply due to reactivated wallets does not change Bitcoin’s deflationary structure. In fact, the event highlights just how little BTC is actively traded relative to the total supply—a factor that could work in favor of bullish investors once selling pressure eases.
Still, market participants are closely watching for further clues. Whether Galaxy Digital continues to offload more of its 80,000 BTC, or whether this was a one-time transfer for custodial purposes, could shape short-term price movements. Weekend trading volumes and potential follow-up actions will likely influence Bitcoin’s next direction.
For now, the market remains on edge as the reawakening of old coins continues to challenge the narrative of dormant supply and unshakable bullishness. Traders and analysts alike are urging caution, emphasizing that in crypto, even coins that have remained silent for over a decade can still have a loud impact.
