Mike Novogratz’s Galaxy Digital is draining more Bitcoin from its wallets, sparking a new debate over whether it’s being sold by a major company or just handling the business of its customers.
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According to on-chain trackers and posts shared by analytics firm CryptoQuant, a total of 1,531 BTC was recently transferred from wallets linked to Galaxy.
Galaxy client trading
Galaxy acts as both a merchant bank and an institutional trading desk, so large transfers don’t always mean it’s reducing its own exposure.
The report notes that Galaxy has executed large customer orders to date, including notional sales of over 80,000 BTC in the past quarter, with many of those trades being processed off-exchange through OTC channels.
Given these facts, it’s hard to interpret short-term outflows as pure profit-taking by Novogratz’s company.
Galaxy digital leakage is rapidly increasing 🚨
Over 1,531 BTC was leaked from the Galaxy Digital wallet. This is a clear sign of increasing short-term selling pressure in the market. 📉 pic.twitter.com/6BdsOZFatM
— Maartun (@JA_Maartun) October 31, 2025
Add detail with on-chain patterns
The move of 1,531 BTC came following a record series of outflows. For example, trackers recorded an outflow of 411 BTC on October 24th, suggesting that this was not an isolated moment but part of several recent transfers related to the company’s wallet.
Some analysts say this pattern looks like increasing selling pressure. Other market watchers said the amount was consistent with customer commitments and rebalancing.
Split market sentiment
Sentiment indicators show a split in mood. Social measures and the so-called Fear and Greed Gauge have recently fallen into the realm of fear. However, the heads of some asset management companies are arguing the opposite.
Bitwise CEO Hunter Horsley said institutional investors were “flooding in” and pointed to the increased interest from institutional investors as a sign of higher levels of demand.
These two views are in conflict. On the one hand are visible capital outflows and unstable short-term capital flows, and on the other hand are increasing allocations to institutional investors.
Background of prices and their meaning
Amid all this activity, Bitcoin is trading at just over $110,000. The price level is important as traders see it as a barrier for the bulls.
When big transfers approach key price points, they receive special attention. Some see it as a profit motive, while others see it as routine customer service. In any case, the ultimate impact on prices will depend on whether buyers step in to absorb supply.
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Signals traders are paying attention to
Notice three items: ETF flows, OTC activity, and on-chain outflows from known custodians. Spot crypto ETFs have shown net withdrawals in recent weeks, which could dampen demand even as large institutions are slowly buying elsewhere.
If wallets tied to large brokers continue to outflow coins while ETF outflows continue, price pressure could increase. But that pressure could quickly ease if inflows into spot ETFs return or large buyers match over-the-counter sales.
Featured image from Unsplash, chart from TradingView