The Ethereum market is under increased pressure as institutional investor Galaxy Digital intensifies its selling activity, fueling concerns over broader market sentiment. The firm, led by billionaire Mike Novogratz, transferred a massive 12,500 ETH — worth approximately $20.09 million — to Binance on April 17, according to blockchain intelligence from Arkham.
Galaxy Digital’s Ethereum Dump Hits $99M in Under a Week
This latest transaction extends Galaxy Digital’s recent offloading streak, bringing its total Ethereum outflows to 62,181 ETH — a staggering $99.4 million — over the past six days. These continuous high-volume transfers are creating ripples across the crypto community, especially as Ethereum hovers around sensitive technical levels.
The transactions have originated from Galaxy’s OTC wallet “0x335,” which has become a focal point for analysts tracking institutional flows. While Ethereum’s overall market capitalization tempers the price impact of such transfers, the psychological effect on market participants cannot be ignored.
Broader Selloff: USDT, USDC, and AVAX Also Moved
Ethereum isn’t the only token in Galaxy’s crosshairs. The firm has also been active across other assets. Data shows a 5 million USDT transfer to KuCoin and a separate move of 620,000 USDC to Coinbase Prime. Last week, Galaxy also shifted 100,000 USDC and small amounts of Avalanche (AVAX), reinforcing the notion of a widespread portfolio rebalancing or liquidation strategy.
Despite the outflows, Galaxy’s wallet still retains 231 ETH ($365,100), 18,150 AVAX ($345,210), and significant holdings in DAI ($4 million) and WCFG ($2 million).
Legal Shadows and Market Uncertainty
The timing of these transactions has raised eyebrows. Galaxy Digital recently agreed to a $200 million settlement with the New York Attorney General’s office over allegations tied to undisclosed LUNA token sales. While no official link has been made between the settlement and the recent crypto transfers, speculation persists about the firm’s shifting risk posture.
Ethereum Whales Join the Exodus
Adding fuel to the bearish fire, several Ethereum whales have re-entered the market — not to buy, but to sell. On-chain data highlights an Ethereum ICO-era wallet that came to life after three years, moving 30,000 ETH ($47.85 million) to Kraken. Another long-dormant whale offloaded 10,702 ETH ($16.86 million), cashing out at $1,576 despite once seeing prices above $4,000.
A particularly concerning case involves an investor with 76,000 ETH who continues to reduce their holdings amid the current volatility, sparking further worry among holders.
Sentiment Weakens Despite Weekly Gains
While Ethereum remains slightly up over the past seven days, the overall sentiment has shifted noticeably bearish due to institutional and whale selling. ETH has slipped by 1.37% in the past 24 hours, and year-to-date performance shows a sharp 52% correction.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
