Bitcoin Undergoes Key Liquidity Test in July – What Experts Are Saying About the Results

After peaking at a new all-time high of over $122,800 earlier this week, Bitcoin (BTC) has undergone a correction, driven by macroeconomic pressures and profit-taking.

In fact, an old Bitcoin whale from the Satoshi era has also started moving its holdings, exacerbating sell-off fears. Still, experts argue that Bitcoin’s ability to weather such transfers without significant price disruption highlights its maturation as a highly liquid asset.

Can Bitcoin Withstand Satoshi-Era Whale Transfers?

In a recent post on X, blockchain analytics firm Lookonchain revealed that the whale who held 80,009 Bitcoins valued at approximately $9.46 billion, transferred 40,009 BTC, worth about $4.68 billion, to Galaxy Digital, adding to its trend of earlier transfers.

Furthermore, Galaxy Digital then deposited 6,000 BTC, worth $706 million, directly into two major cryptocurrency exchanges, Binance and Bybit. This indicated that the firm is likely preparing to sell these assets.

“There’s still a remaining 40,000 BTC in four separate wallets, totaling 10,000. Galaxy Digital doesn’t sell to exchanges immediately after the transfers are made; it waits a while before selling in increments of 200-300 BTC,” The Crypto GEMs added.

Nonetheless, the activity revealed a great deal about Bitcoin’s liquidity. A market watcher, Vijay Boyapati, stressed that the volume rivaled Germany’s Bitcoin sales from the previous year. Despite this, the market absorbed the pressure with only a modest decline.

“Bitcoin is now one of the most deeply liquid markets on Earth, up there with gold and Treasuries,” he wrote.

In a separate post, Boyapati stated that the transfers should not be viewed as a cause of concern. Instead, it marks an important step in the process of monetization.

This shift from a few large holders to a broader group is a sign that Bitcoin is increasingly becoming a widely recognized form of money.

Furthermore, Bloomberg’s ETF analyst James Seyffart also weighed in. He noted that the transfers exemplify how substantial capital is now required to move Bitcoin’s price significantly, both upwards and downwards, further reinforcing its growing maturity.

“Obviously price moves at the margins and a lack of either buyers or sellers at any given time could cause relatively massive moves. but broadly speaking what i said is correct,” Seyffart said.

Many industry leaders echoed this sentiment, highlighting the maturation of the current Bitcoin cycle.

“Bitcoin’s move above $120,000 isn’t just another milestone. It’s a signal that crypto has entered a new phase where institutional confidence is driving consistent demand. What stands out this time is the quality of the rally. It’s spot-driven, not built on leverage, and it’s unfolding in a relatively calm market. That points to a more mature and resilient structure compared to previous cycles,” Alexander Zahnd, interim CEO of Zilliqa told BeInCrypto.

Meanwhile, Shawn Young, Chief Analyst at MEXC Research, explained to BeInCrypto that the movement of such long-held assets usually indicates a major shift in macroeconomic sentiment. He elaborated that the transfers follow a coordinated OTC strategy, typical of institutional investors.

Young revealed that most of the funds are moving through brokerage-linked wallets and custodial structures. This suggests a reallocation rather than market dumping.

“The distinction matters. A reallocation to institutional custody is a sign of market maturation. A broad sell-off, on the other hand, would signal risk-off sentiment at the highest levels. So far, the market’s muted reaction suggests the former. But all eyes are on the next move,” he mentioned.

The analyst added that the main question is not the whale’s identity, but the strategy behind the move. If the assets hit exchanges, it could cause short-term supply pressure. If they remain in custodial setups, it may signal long-term planning for asset protection or regulatory shifts.

“The timing isn’t random. Bitcoin just hit an all-time high of almost $123,000. Institutional demand is strong, with $297 million flowing into spot ETFs in just one day. With all this going on, a reawakened whale might be testing the market’s appetite or moving their holdings to safer custodians. Either way, this isn’t a hit-and-run situation, but a staged, slow-motion capital deployment,” Young told BeInCrypto.

Whether Bitcoin will drop or remain resilient amid these transfers remains uncertain. For now, the largest cryptocurrency trades just 3.7% below its record peak.

Bitcoin Price Performance. Source: BeInCrypto

BeInCrypto data showed that at press time, BTC’s trading price was $118,251, up 1.08% over the past day.

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