Galaxy Digital confirmed the sale of over 80,000 bitcoins, totaling over $9 billion. This transaction is one of the largest in the cryptocurrency's history.
Transaction Details
Galaxy Digital announced the sale of over 80,000 bitcoins for an anonymous client, who is one of the earliest holders of the cryptocurrency. The transaction was part of a long-term estate planning strategy. The seller had held this stash since the early 2010s or earlier.
Impact on Bitcoin Market
The sale took place on Thursday, when the company began transferring billions in BTC to exchanges. Although moving coins to exchanges does not always indicate liquidation, Galaxy later withdrew about $1.15 billion in stablecoins, indicating that a significant portion of the assets had indeed been sold. Despite Bitcoin’s price dropping to under $115,000, it slightly rebounded on Friday to $117,200. While the market did not crash, concerns about liquidity and sell-side pressure have arisen.
New Valuation Models from Citigroup
On the same day the sale became public, Citigroup analysts Alex Saunders and Nathaniel Rupert released a detailed report on how to assess Bitcoin’s price. The report states that Bitcoin’s price ultimately depends on how many people want to hold it. The new framework introduced by Citi combines previous approaches and incorporates recent macroeconomic changes, emphasizing that cryptocurrencies have become too significant to ignore.
The Galaxy Digital transaction highlights the active involvement of early investors in the cryptocurrency market, while new valuation models from Citigroup may shift perspectives on crypto assets.
