Galaxy Digital’s Market Makers Cash In: Massive BTC Sell-Off Sparks Market Frenzy

Whales make waves—again. Galaxy Digital's lead market makers just triggered a Bitcoin liquidity event, dumping stacks on the open market. Here's why it matters.

The Profit-Taking Playbook

When institutional heavyweights like Galaxy start unloading BTC, it's never accidental. This is textbook profit-taking—locking in gains while retail traders FOMO in near cycle tops. Classic.

Market Impact: Ripple Effects

Expect short-term volatility as algos react to the supply shock. But let's be real—this is crypto. The 'smart money' sells just before announcing some bullish catalyst to buy back cheaper. Rinse, repeat.

The Bigger Picture

Remember: every sell order gets matched with a buyer. When whales feed, it's not the end—it's how markets mature. (Though watching hedge funds play hot potato with Satoshis never gets old.)

Galaxy Digital leads the selling trend

The past day has seen significant outflows from Galaxy Digital’s reserves, reaching exchanges for direct sales. On-chain data shows the crypto custodial service and market maker moved a total of 30,000 BTC, with most sent to exchange hot wallets. 

The markets had to absorb up to $3.5B in new BTC inflows. Galaxy Digital now stores $1.15B in stablecoins. 

Update:#GalaxyDigital has transferred nearly 30,000 $BTC($3.5B) out today, most of which went directly to exchanges and were sold.

Then #GalaxyDigital withdrew 1.15B $USDT from exchanges.#GalaxyDigital still holds 18,504 $BTC($2.14B).https://t.co/bVtNwP2iXI pic.twitter.com/Wv1cD3aHbf

— Lookonchain (@lookonchain) July 25, 2025

Galaxy Digital was also the recipient of funds from one of the recent high-profile whales. The early buyer moved 80,000 BTC, some acquired at under $1.

After moving the coins to new addresses, the whale deposited all the funds to Galaxy Digital. On-chain investigators noted that the market Maker managed to place up to 70,000 BTC on exchanges, with 10K remaining as part of the remaining balance on Galaxy Digital. 

Galaxy Digital placed some of the BTC through BitStamp, an exchange widely used during previous bull cycles. 

Market makers cut their BTC reserves

Other market makers also saw outflows of their BTC reserves. Jump Crypto sold hundreds of BTC in the past days, and is down from 1.3K BTC to 894 BTC. 

Cumberland also continued to send BTC to multiple exchanges, especially Gemini. The market maker is down to 62 BTC in one of its hot wallets. 

One of the most influential market makers is still Wintermute. Previously its founder Evgeny Gaevoy stated the marker maker ran out of BTC on its OTC market. However, Wintermute never goes without the BTC it needs for market making activities. 

According to the Arkham Intelligence on-chain data, Wintermute kept receiving BTC from Binance in the past 24 hours. The coins may be used for spot activities, as most traders have noted Wintermute’s effect on BTC rallies. Previous critics have noted Wintermute has used its reserves to force liquidations and market capitulation, allowing whales to buy lower. 

Other BTC holders also continue sending coins to markets. In the past day, 91,119 BTC may have entered the market, originating from unidentified whales, BTC custodians, exchanges, and other holders.

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