The cryptocurrency space is ripe with conspiratorial speculation over its market movements. However, the red candle at Bitcoin’s recent local top seemed to come out of the blue — even by crypto-standards. In the span of just a few minutes, the price collapsed by more than $1,7000 dollars.

Aside from the fact that Coinbase crashed during this time — which is also strange in its own right — multiple whale wallets were also on the move.

According to Twitter account @whale_alert, many large Bitcoin wallets began moving funds just an hour before the red candle. Tens of millions of dollars were moved at a time, often in under 1000 BTC chunks. Much of it came from Bitfinex and BitMEX.

https://twitter.com/cryptodotbi/status/1143928594693013506

How could this have caused a price drop if the BTC is being transferred out of the exchange?

Given that large Bitcoin holders are well-aware that their movements are tracked by bots, they often opt to use mixers.

https://twitter.com/cryptodotbi/status/1143936187108921346

Much of this BTC ended up moving to other exchanges, as Twitter user @cryptodotbi points out.

https://twitter.com/cryptodotbi/status/1143936937855737856

The coincidence of so much BTC moving just an hour before the price collapse is enough to make you wonder: could it be that the red candle was orchestrated in a massive, five-minute selloff frenzy? It is also possible that Coinbase going down at this moment further intensified the downtrend.

Regardless, it seems strange for all this to be mere coincidence. It should not surprise us that many large wallets hold most of the cards and their movements create ripples throughout the rest of the market.

The red candle that dropped BTC over $1,700 in just a few minutes seems to have a clear catalyst.

Do you agree that large BTC wallets were responsible for the sudden sell-off? Let us know your thoughts below. 

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