14-Year Dormant Wallet Dumps 20K BTC, Stoking Correction Worries

A Bitcoin (BTC) wallet holding over 80,000 BTC, untouched for more than 14 years, has sprung to life, liquidating 20,000 BTC worth $2.4 billion and transferring billions more to institutional custodian Galaxy Digital.

The sudden movement of these ancient coins, originating from Bitcoin’s earliest days, has sent ripples of anxiety through the market, drawing stark parallels to the Mt. Gox trustee wallet reactivations in 2024 that preceded a brutal 31% BTC price correction.

Strategic Moves from a Bitcoin Pioneer

According to Lookonchain, the Bitcoin OG controlled eight wallets. Two received 20,000 BTC on April 2, 2011, while the other six received 60,009 BTC on May 4, 2011.

Four addresses woke up on July 4, 2025, transferring 40,000 BTC. Several hours later, the other wallets also stirred to life, moving 20,000 BTC, priced at about $2.17 billion, to a new location.

Then, on July 14, after a short period of quiet, the ancient hodler moved 40,009 BTC worth some $4.68 billion to Galaxy Digital, over several hours, with the platform funneling some of these funds directly into Binance and Bybit. It confirmed the whale’s intention to at least sell portions of the stash, moving beyond initial speculation about mere wallet consolidation or security upgrades.

Given the sheer scale of the transactions, pseudonymous CryptoQuant analyst OnChainSchool has compared them to the Mt. Gox wallet reactivations in 2024. When the defunct exchange’s trustee began moving BTC last year, it caused the flagship cryptocurrency to lose 31% of its value in the weeks following the dump, and more than six months to recover.

The current whale activity shares a few similarities: massive volume, long dormancy, and action near an ATH, fueling speculation that it could trigger a similar correction.

“So far, only a portion of the holdings has been sold,” wrote OnChainSchool. “Whether the outcome will be similar this time remains uncertain, but the parallels are worth noting.”

Market Jitters vs. Historical Context

However, there are also a few key differences. For one, this sell-off is being managed professionally via Galaxy Digital, suggesting a more controlled distribution. Furthermore, according to investor Daan Crypto Trades, such events often generate exaggerated fears that tend to dissipate way before the actual selling concludes.

The trader also referenced the sale last summer by the German government of 50,000 BTC for about $2.5 billion, where the market absorbed the pressure over time. While the historic wallet’s potential overhang is up to 80,000 BTC, valued at around $9.46 billion, the institutional and OTC demand right now is arguably stronger than it was last year, giving a glimmer of hope that the supply can be absorbed without ruffling the market too much.

Meanwhile, Bitcoin, which celebrated a new all-time high of over $123,000 on Monday, per CoinMarketCap, has retraced a bit. At the time of this writing, the asset was trading around $117,500, reflecting a 4% since the peak. The dip interrupts a commendable weekly performance that saw its value jump 7.5% and a monthly gain of more than 11%.