Bitcoin declined over $350 on Thursday, losing about $300 in less than 30 minutes. Here are three possible reasons behind the bearish move.
WHALES AT WORK AGAIN
Yesterday, Twitter user Whale Alert reported that 7,800 BTC worth about $79 million was transferred from one unknown wallet to another unknown wallet. After about 4 hours, the same amount moved again, bringing the total size of the transfer to 15,600 BTC or about $158 million.
While we don’t know whether those transactions involved crypto exchanges, whales might be interested in dumping Bitcoin gain ahead of the Bakkt launch. The Bitcoin futures trading platform is about to go live on September 23.
Another interesting theory is that whales are trying to stop the altcoin surge by dumping their Bitcoin. Starting from Tuesday, Ripple, Ethereum, Bitcoin Cash, Stellar Lumens, Litecoin, and other coins unexpectedly surged, leaving the king of crypto with its sideways trend. The altcoin agitation might have been triggered by Ripple, whose price was driven by the proposed hard fork or rumours about a connection with Coinbase.
Dozens of altcoins later followed XRP in a hope to jump-start the altcoin season. The chances are that Bitcoin holders do not like such a scenario and that by dumping Bitcoin, whales would scare crypto investors as a whole, including those who bet on altcoins. Source