After experiencing large gains for several days, causing the investors to think that the bearish influence is finally behind them, the crypto market has just sunk back into trading in the red. The shift has brought Bitcoin below $4,000, which is a mark that the coin struggled to reach for days now, even succeeding in doing it on several exchanges.
At the time of writing, however, the largest coin’s price is back at $3999.4, with a drop of 1.35%, according to TradingView.
Why are the prices falling?
While the crypto prices are still as volatile and as unpredictable as ever, it is believed that the current drops are not caused by the natural flow of the market. Instead, it is possible that the prices are sinking due to recent activities of large coin holders known as crypto whales.
Whales are experts at crypto trading who are in possession of large quantities of various cryptocurrencies. Their actions — large sales or purchases — can often influence the market and even revert the on-going trends, which is likely what happened in this case. Due to their influence, many in the crypto community are following the whales’ behavior on a daily basis.
As a result, any large shift in their wallets is immediately reported, so that regular traders can prepare themselves for handling the situation as soon as possible. The latest reports show that millions of dollars worth of XRP were recently transferred. The transfer from Ripple, a San Francisco-based startup, which moved 73,200,000 XRP ($23.9 million).
The latest transaction moved around 47,200,000 XRP ($15.7 million) which were sent to an unknown wallet. This may mean that Ripple has sold these coins, which is not unusual, as the company often does it in order to pay for the costs of its own operations.
Bitcoin and TRON transfers followed
In addition to the XRP transfer, Bitcoin whales also made a move by sending as much as 12,300 BTC ($48.7 million). These transfers were made yesterday, and while the wallets from which the coins came are mostly unknown, the location they were sent to is the crypto exchange known as Bitfinex. This indicates that the coins are about to be sold, which may be the reason why Bitcoin’s price has dropped below $4,000.
A similar situation also includes TRON (TRX), which has also seen a lot of activity from its own whales in the last several days. The whales have moved nearly half a billion TRON coins. The total amount that was moved is 409,499,944 TRX, which amounts to around $10.2 million. Just like Bitcoin, these coins were also sent to crypto exchanges, with the most coins ending up at Binance, Bittrex, Huobi, and Bitfinex.
It is currently unclear whether or not these transfers will have lasting consequences on the crypto market, although they certainly affected it in the short term. Most of the market is trading in the red at the time of writing, with only a handful of coins not being directly affected in the top 100 largest cryptos.