The Reason for the Sharp Decline in Bitcoin and Altcoins Revealed: It Was Done After Trump! - Coin Bulletin

Following Donald Trump's plan to include cryptocurrencies in the strategic reserve, billions of Ripple (XRP) and thousands of Bitcoins were transferred to (BTC) exchanges.

According to the on-chain analysis firm CryptoQuant's report, hourly XRP inflows reached up to 193 million immediately after Trump's statement. The majority of these transfers were made by large investors conducting transactions involving 1 million or more XRP. On the Bitcoin side, the amount of BTC entering exchanges increased from daily 500-1,000 levels to 6,739 BTC. Similarly, Ethereum (ETH) inflows also rose to 300,000 per hour.

These large transfers may have contributed to the sharp pullback following the sudden rise in prices.

A large influx of funds into the exchanges generally indicates a selling intention because large investors usually keep their assets in cold wallets. CryptoQuant analysts noted that the sudden drops following the rise on Monday and Tuesday indicated that the real spot demand is still in a narrowing area.

According to analysts, the increase in demand for Bitcoin accelerated with the US election results in November-December 2024, but is currently in a contraction zone for the first time since September 2024. If there is no renewed increase in demand for Bitcoin, it will be difficult for prices to enter a sustainable upward trend.