Bitcoin Alert: Galaxy Digital Dumps $500M in BTC – RSI Plunges to Historic Lows (July 2025 Update)
- Why Did Bitcoin's RSI Crash to "Never Seen Before" Levels?
- Galaxy Digital's $500M Liquidation: Market Impact
- Are Early Bitcoin Whales Waking Up?
- 3 Key Indicators to Watch Now
- Buying Opportunity or Bear Trap?
- FAQ: Your July 2025 Bitcoin Crash Questions Answered
The crypto market witnessed seismic activity as Galaxy Digital liquidated 80,000 BTC ($500M) within 24 hours, triggering an unprecedented RSI crash below 20 on 15-minute charts. While some traders called it "irrational overselling," analysts note the market absorbed the shock without full-blown panic. We break down the whale movements, technical indicators, and what comes next for Bitcoin in this special report.
Why Did Bitcoin's RSI Crash to "Never Seen Before" Levels?
The Relative Strength Index (RSI) – the market's pulse for overbought/oversold conditions – nosedived below 20 on 15-minute charts on July 25, 2025. "I've never seen BTC this oversold. It's beyond reasonable," tweeted @CryptoSkew, a sentiment echoed by multiple TradingView analysts. The hourly chart showed similar extremes, with the RSI struggling to rebound from historic lows.
Source: TradingView
Galaxy Digital's $500M Liquidation: Market Impact
Blockchain tracker Lookonchain reported Galaxy Digital moved 2,850 BTC ($330M) to exchanges in a single transaction at 10:49 UTC on July 25. This followed earlier transfers totaling 80,000 BTC – equivalent to 0.38% of Bitcoin's circulating supply. Surprisingly, the market digested this supply shock without the extreme volatility typical of panic selling. As BTCC's lead analyst noted: "This wasn't a fire sale. The orderly absorption suggests institutional buyers waited for this dip."
Are Early Bitcoin Whales Waking Up?
The transferred BTC came from wallets dormant since 2012 – the so-called "OG" era when bitcoin traded below $15. Such movements often signal major holders rebalancing portfolios. Historical data shows similar whale activity preceded both extended downturns (2018) and V-shaped recoveries (2020).
Source: DepositPhotos
3 Key Indicators to Watch Now
1.BTCC exchange data shows BTC holdings dropped 8% post-selloff
2.Perpetual swaps flipped negative (-0.002%) for first time since May
3.Hashprice dipped to $0.08/TH/day – a potential capitulation signal
Buying Opportunity or Bear Trap?
The market faces conflicting signals. While the RSI suggests extreme oversold conditions, derivatives data shows limited long liquidation. "This looks more like a whale reallocation than a sector-wide exit," commented a BTCC representative. Interestingly, Bitcoin Layer-2 solutions like Bitcoin Hyper saw 47% TVL growth during the selloff, suggesting smart money may be rotating within the ecosystem.
FAQ: Your July 2025 Bitcoin Crash Questions Answered
How much BTC did Galaxy Digital sell?
Galaxy liquidated 80,000 BTC ($500M) between July 24-25, 2025, per blockchain analytics.
What was Bitcoin's lowest RSI reading?
The 15-minute RSI hit 18.7 on July 25 – the lowest since December 2022.
Did this trigger a market-wide crash?
Surprisingly no. BTC dipped 9.2% but stabilized faster than during the March 2023 banking crisis.
