Galaxy Completes Massive BTC Sell-Off Amid Bullish Signals for BTC and XRP
The cryptocurrency market faced significant volatility at the end of the business week, with major assets like Bitcoin (BTC) and XRP dropping by up to 10% from recent highs. While large sell-offs contributed to the downturn, on-chain analytics firm Santiment suggests a potential reversal may be on the horizon.
Adding to the turbulence, Galaxy Digital executed one of the largest Bitcoin sell-offs in crypto history, liquidating over 80,000 BTC (worth approximately $9 billion) on behalf of an early investor. Despite this, declining greed levels among retail traders could signal a buying opportunity for BTC and XRP, according to Santiment. Meanwhile, Ethereum (ETH) remains in a greed-dominated phase following its 147% surge since April.
This article explores:
- The recent market dip and Santiment’s bullish indicators
- Galaxy Digital’s historic BTC sell-off and its implications
- How BTC and XRP compare to ETH in current market sentiment
- What traders should watch next
Market Turbulence: BTC and XRP Dip Amid FUD and Sell-Offs
Bitcoin and XRP saw sharp declines after reaching new all-time highs last week. BTC dropped from over $123,000 to under $115,000, while XRP slipped from $3.65 to just below $3. The pullback was partly driven by fear, uncertainty, and doubt (FUD) stemming from large sell-offs—including Galaxy Digital’s massive transaction.
Santiment’s latest analysis highlights that both assets have exited the "greed zone" in social dominance metrics. Historically, when retail traders exhibit low greed levels after a correction, it often precedes a rebound. As Santiment noted:
“Markets tend to move in the opposite direction of what the crowd expects, which actually makes BTC and XRP buy-low candidates.”
This pattern has played out before—most notably during Bitcoin’s mid-cycle corrections in previous bull markets—where panic selling led to strong recoveries.
Galaxy Digital’s $9 Billion Bitcoin Sell-Off: What Happened?
On Friday, Galaxy Digital announced it had completed one of the largest Bitcoin transactions in crypto history, selling over 80,000 BTC (worth ~$9 billion) for an early investor. The firm described it as:
“One of the earliest and most significant exits from the digital asset market.”
Key Implications of the Sale:
- Short-Term Pressure: The sheer volume likely contributed to BTC’s drop to a two-week low.
- Long-Term Neutralization: With this sell pressure now absorbed, the market may stabilize or rebound if demand persists.
- Historical Context: Large institutional sell-offs have previously led to temporary dips followed by recoveries (e.g., Mt. Gox distributions in 2024).
While such transactions can induce volatility, they also demonstrate institutional maturity in handling high-volume exits without catastrophic market disruptions.
Ethereum’s Contrasting Sentiment: Still in the Greed Zone
Unlike BTC and XRP, Ethereum remains in a greed-dominated phase after rallying 147% since early April. Santiment warns that excessive optimism can precede corrections—a pattern seen in past cycles where ETH retraced after extreme retail FOMO (fear of missing out).
BTC & XRP vs. ETH: Market Sentiment Comparison
| Asset | Recent Performance | Sentiment (Santiment) | Outlook |
|--------|---------------------|-----------------------|---------|
| BTC | Dropped ~6% from ATH | Low greed (bullish contrarian signal) | Potential rebound |
| XRP | Fell ~18% from peak | Declining social dominance | Possible accumulation zone |
| ETH | Up 147% since April | High greed (caution advised) | Risk of pullback |
This divergence suggests traders may rotate capital into BTC and XRP if ETH’s momentum stalls.
Strategic Conclusion: What Crypto Investors Should Watch Next
- BTC & XRP Rebound Potential: If historical patterns hold, declining greed levels could signal an upcoming reversal for both assets.
- ETH’s Overextension: Traders should monitor whether Ethereum’s bullish sentiment leads to profit-taking or sustained growth.
- Institutional Moves: Galaxy’s sell-off is absorbed—watch for new institutional inflows or further large-scale transactions.
- Macro Factors: Broader market conditions (Fed policy, ETF flows) remain critical for crypto’s next major move.
While short-term volatility persists, long-term investors may view this dip as an opportunity—especially if Santiment’s contrarian indicators prove accurate once again. For now, cautious optimism and strategic positioning remain key as the market digests recent developments.