A confluence of events in the cryptocurrency market is fueling concerns about a potential correction, as Bitcoin reached new all-time highs, surpassing $122,000. These include a massive Bitcoin transfer by a Satoshi-era whale and the U.S. House of Representatives passing the GENIUS Act.
Bitcoin Whale's Billion-Dollar Transfer
A Bitcoin whale, associated with the earliest days of the cryptocurrency, has moved a substantial amount of Bitcoin, worth billions of dollars. On July 4, the whale initially moved 80,000 BTC, valued at $9.6 billion. This was followed by a transfer of 40,191.5 BTC (approximately $4.8 billion) to Galaxy Digital after 14 years of inactivity. In total, the whale transferred 80,201 BTC, worth $9.6 billion to Galaxy Digital over four days. Some 6,000 Bitcoin were sent to crypto exchanges Binance and Bybit.
This activity has sparked speculation about the whale's intentions, with some suggesting it could be a strategic shift to secure profits after holding Bitcoin for over 14 years. Kadan Stadelmann, CTO of Komodo Platform, speculated that the whale might be securing "jaw-dropping profits". The whale accumulated the majority of their Bitcoin between 2011 and 2012. The timing of these transfers, coinciding with Bitcoin reaching record highs, has amplified speculation that the whale is capitalizing on the market peak.
Blockchain analytics firm Onchain Lens detected these transfers, highlighting the scale and rarity of such a transaction. Experts suggest the move reflects long-term asset management, not a sell-off, with Galaxy Digital potentially acting as an intermediary for smaller wallet distribution or new crypto investments. Galaxy Digital's wallet currently holds over 40,288 BTC and has previously transferred assets to exchanges like Bitstamp, Coinbase, and Gemini.
GENIUS Act and Regulatory Landscape
The U.S. House of Representatives passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which establishes a framework for private companies to issue stablecoins. Stablecoins are cryptocurrencies that have their value pegged to another financial asset, typically a traditional currency like the U.S. dollar. The GENIUS Act will now move to President Trump's desk for signature, having passed both chambers of Congress. The House also passed the CLARITY Act, which would establish a framework for cryptocurrency regulation, and the Anti-CBDC Surveillance State Act, which would prevent the Federal Reserve from issuing a central bank digital currency.
President Trump has expressed his desire to make the U.S. "the crypto capital of the world". The GENIUS Act garnered bipartisan support in both the House and Senate. House Financial Services Chair French Hill said the bill will “ensure American competitiveness and strong guardrails for our consumers”.
Correction Concerns
The combination of the large Bitcoin transfer and the passage of the GENIUS Act has led to concerns about a potential market correction. Some analysts believe the whale may have opted to sell due to concerns related to the GENIUS Act. A correction is a significant decline in the price of an asset, typically 10% or more. Market participants are closely monitoring these developments to assess their potential impact on Bitcoin's price and the broader cryptocurrency market.
While the GENIUS Act is seen as a positive step towards regulatory clarity for stablecoins, it also reduces the influence of the Federal Reserve in their oversight. The oversight is largely split between the States, the Treasury, and the Office of the Comptroller of the Currency (OCC). The Treasury can decide otherwise under exigent circumstances.
