According to on-chain data from Lookonchain, the previously reported long-dormant Bitcoin OG whale has started moving the remaining 40,192 BTC, nearly $4.8 billion, to a new wallet. This coincides with a 40x short position opened by trader James Wynn and has put Bitcoin under heavy selling pressure.
This is the second dump in a week after 40,000 BTC; allegedly from the same entity; was dumped to Galaxy Digital. Who is the OG whale? Is this a premeditated dump, a security breach, or a change in long-term whale behavior?
Dormant BTC Wakes Up: A Satoshi Era Whale Returns
As noted in our earlier reports, the Bitcoin OG whale in question has coins mined between 2010 and 2011; many of which have been untouched for over 10 years. On July 16, Lookonchain confirmed the whale moved 40,192 BTC to a new address: bc1qs4.
This followed an earlier 40,000 BTC dump to Galaxy Digital. Combined, these two dumps are over $9.5 billion in BTC that have suddenly become active after 14 years.
Within hours of the whale’s transaction, Bitcoin’s price dropped from its $123k all-time high for 2025 to $116,000, a 5.7% drop. Although at the time of this publication, Bitcoin had recovered to $118,450, trading volume is down 18% over the last 24 hours.
Additionally, it coincides with institutional traders reversing their position. James Wynn, a high-leverage trader, closed his 40x BTC long for a $368,120 profit and went short with the same 40x leverage. His stop loss is set at $120,142, just above the current price, which tells that he’s expecting more downside.
Whale Selloffs Have Moved Markets Before
This isn’t the first time a Bitcoin OG whale has caused chaos. In 2020, a single transaction of 50 BTC from a Satoshi-era wallet caused a 12% drop in a matter of hours, despite being a small amount by today’s standards. What’s different in 2025 is the scale: over 80,000 BTC have been activated and possibly sent to exchanges.
According to CryptoQuant, these BTC were broken into smaller tranches, split across multiple wallets and funneled into liquidity centers.
Whales have in the past sold during periods of high retail activity, taking profits after long accumulation phases. With Bitcoin near its cycle top and ETFs bringing in new inflows, whales may see this as the exit window.
Is This the End of the Rally or a Temporary Reset?
Despite the volatility, some analysts are saying this is a healthy correction. As long as BTC holds above $117,000, it’s still in its uptrend. But if it breaks below that zone, it could trigger cascading liquidation,s especially with Wynn’s short setup.
Santiment’s latest report showed elevated “whale to exchange” ratios over the last 3 days; an early sign of sell pressure. Adding to that, declining retail interest and volume.
This narrative that BTC shakeouts just redistribute supply is one that long term holders often cling to. But even strong hands can fold if regulatory or security red flags appear.
Conclusion
Based on the latest research, the Bitcoin OG whale activity is creating high risk across the market. 80,000+ BTC moved in under a week and James Wynn’s 40x short position has amplified the bearish pressure as Bitcoin hit new highs.
Technicals still look good for the bigger picture but the market structure is fragile and sentiment depends on if this selloff continues or stalls.
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Summary
The previously reported Bitcoin OG whale has moved 80,192 BTC this week and people are worried about more selling. On-chain data shows these Satoshi-era funds worth over $9.5 billion are moving to exchanges. James Wynn has gone bearish and opened a 40x short above current prices. Bitcoin has dropped from $123k to $118k with 18% less volume.
FAQs
What is a Bitcoin OG whale?
A Bitcoin OG whale is an early Bitcoin holder, usually from the Satoshi era (2009–2011), with large holdings from early mining or transactions.
Who is James Wynn?
James Wynn is a high-leverage trader who makes big directional bets. His recent 40x short is bearish on Bitcoin.
Is the BTC transfer a hack?
No confirmation but some experts like Coinbase’s Conor Grogan think it could be compromised keys.
What happens if Bitcoin drops below $116K?
If BTC drops below $116,000, the market could see cascading liquidations and the next support zone is $112,500.
Glossary
Bitcoin OG Whale – An early adopter who holds a large amount of BTC, typically acquired before 2012.
40x Short – A leveraged bet where a trader profits if the asset price falls, multiplied 40 times.
Dormant Wallet – A crypto wallet that has not transacted for several years.
Liquidation Price – The price at which a leveraged position is automatically closed to prevent further losses.
On-chain Analytics – Blockchain data analysis to track wallet activity, volume and flows.
Sources
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