XRP News Today: Chris Larsen Transfers 50M XRP, Analysts Warn 2.58B Holdings Pose Sell Pressure Risk

Ripple co-founder Chris Larsen’s recent transfer of 50 million XRP tokens to exchanges has reignited concerns about potential market instability, with analysts warning of heightened sell pressure. The move, linked to a wallet associated with Larsen, underscores his remaining holdings of approximately 2.58 billion XRP—valued at $8.83 billion—as highlighted by CryptoQuant analyst A. Maartunn [2]. This follows a $200 million XRP sale by Larsen earlier in July, which triggered immediate market anxiety [3]. The transaction has prompted warnings for smaller investors to guard against “exit liquidity” risks, a scenario where large-scale selling erodes value for retail holders [4].

The timing of the transfer coincided with broader crypto market turbulence, including a sharp Bitcoin price decline and a 14-year-old Bitcoin whale offloading 80,000 BTC via Galaxy Digital. This sale briefly pushed Bitcoin’s price to $114,500 before rebounding to $118,356 [4]. Over $500 million in forced liquidations were recorded in 24 hours, per CoinGlass, as leveraged traders faced margin calls during volatile price swings. XRP’s price fell 13% from its July 17 peak of $3.60 to $3.18 [4], amplifying concerns about the token’s stability.

Maartunn emphasized that Larsen’s remaining stake could lead to further sell-offs, noting the recent 50 million XRP transfer might only be a precursor to larger transactions [2]. While U.S. SEC rulings permit such sales, analysts caution that large wallet movements by key stakeholders can erode confidence, particularly during fragile market conditions. Some CryptoQuant contributors argue that whale activity should not be directly equated to price predictions but acknowledge the psychological impact on investor sentiment [7].

Reactions within the crypto community remain divided. Supporters argue that profit-taking by long-term holders is a normal market behavior, while critics accuse Larsen of capitalizing on recent price momentum to offload assets, potentially at the expense of smaller investors [4]. Traders have echoed warnings against mimicking whale transactions without careful analysis, as such moves can destabilize markets during uncertain periods [4].

The transfer occurred amid broader regulatory and macroeconomic uncertainties. The Federal Reserve’s pending rate decisions and ongoing tariff negotiations have added complexity to crypto market assessments, with XRP reflecting sector-wide jitters [9]. Despite these challenges, some analysts remain cautiously optimistic about XRP’s long-term potential, though immediate risks persist.

Larsen’s actions highlight the delicate interplay between regulatory compliance and market perception in the crypto space. While Ripple’s legal battles with the SEC have subsided, the behavior of key stakeholders continues to influence investor trust. The market’s ability to stabilize and recover from recent declines will depend on whether selling pressure subsides or intensifies.

Sources:

[1] [XRP Wallet Linked to Chris Larsen Still Has $9B to Sell](https://cointelegraph.com/news/xrp-wallet-linked-to-chris-larsen-still-has-9b-to-sell-analyst-warns)

[2] [Chris Larsen Shifts 50M XRP to Exchanges, Analysts Warn 2.58B Holdings Pose Sell Pressure Risk](https://www.ainvest.com/news/xrp-news-today-chris-larsen-shifts-50m-xrp-exchanges-analysts-warn-2-58b-holdings-pose-sell-pressure-risk-2507/)

[3] [Ripple Co-Founder's Big XRP Transfer Sparks New Warnings](https://thecoinrise.com/ripple-co-founders-big-xrp-transfer-sparks-new-warnings/)

[4] [XRP's 630% Price Catalyst Returns as Whale Longs Top 1M](https://cryptorank.io/news/feed/52d89-xrp-s-630-price-catalyst-returns-as-whale-longs-top-1-m)

[7] [CryptoQuant Analyst Maartunn Warns Investors to Think Twice Before Buying XRP](https://thecryptobasic.com/tag/ripple/)

[9] [Fed Rate Decision Looms Over 3% Crypto Market Drop as Tariff Negotiations Intensify](https://www.ainvest.com/news/bitcoin-news-today-fed-rate-decision-looms-3-crypto-market-drop-trump-weighs-policy-tariffs-2507/)