Bitcoin Plunges Below $90K as Galaxy Digital Sells

The latest Bitcoin downturn has been significantly accelerated by persistent selling from major institutional players, with Galaxy Digital emerging as a key contributor to the market pressure. According to top analyst Darkfost, the firm moved more than 2,800 BTC during the recent decline, a substantial amount given the current environment of fear and declining liquidity. A particularly notable transaction involved 1,474 BTC transferred to Coinbase Prime, equivalent to approximately $135 million at recent prices.

Such large inflows to an institutional exchange like Coinbase Prime are typically interpreted as preparation to sell, and this wave of supply appears to have coincided with Bitcoin’s accelerated move below the $90,000 level. When large, sophisticated entities like Galaxy Digital reduce exposure during periods of heightened volatility, it often intensifies fear among retail traders and shorter-term participants. The timing of these transfers—occurring as Bitcoin was already slipping through critical support zones—likely amplified the downside impact, contributing to the sharp overnight drop that has pushed BTC into what analysts describe as ‘dangerous territory.’

Bitcoin’s price action shows a decisive breakdown on the 3-day chart, with BTC now trading around $90,400 and sitting directly on top of the 200 moving average—a level that has historically acted as a final line of defense during major corrections. The rejection from the $110,000–$115,000 zone triggered a cascade of lower highs, shifting market structure firmly into a short-term downtrend. Momentum has deteriorated quickly, and the clean break below both the 20-day and 50-day moving averages confirms bearish control.

Volume has spiked noticeably during the most recent candles, indicating forced selling and liquidation-driven moves rather than organic distribution. This aligns with the broader fear-driven environment and recent data showing large entities offloading significant amounts of BTC. The high-volume flush suggests capitulation behavior, especially as Bitcoin revisits levels not tested since early 2025. If buyers defend the 200 MA level and the price stabilizes, it could mark the beginning of a base formation. However, a clean breakdown below this critical moving average would expose the next major support near $82,000–$85,000, signaling deeper downside risk for the cryptocurrency.

While sentiment is undeniably fearful and the immediate effect of the institutional selling is clearly negative, analysts like Darkfost emphasize that such phases of heavy selling and forced repositioning are characteristic of late-stage corrections. The combination of forced liquidations, institutional selling from players like Galaxy Digital, and panic-driven exits may be creating the final stage of a broader reset—one that historically precedes major cycle reversals in Bitcoin markets.

Once large sellers finish distributing their holdings, markets often stabilize and rebuild from stronger hands. The current environment of aggressive institutional selling, combined with technical breakdowns and high-volume capitulation, suggests that Bitcoin may be undergoing the painful but necessary process of shaking out weak positions. While the breakdown below $90,000 has intensified concerns about a transition to a full bear market, this period of distribution and repositioning could ultimately lay the foundation for the next sustainable upward move, provided key support levels hold and selling pressure eventually subsides.