A market pundit has suggested that Coinbase may be manipulating the XRP price, alleging that this event is contributing to the price struggles.
For context, XRP has struggled to climb above the $3 level despite signs of recovery in the wider crypto market. It currently trades around $2.90 after more than a week of sideways movement, and some analysts believe exchange activity may be holding it back.
Coinbase XRP Holdings Drop by 69%
Market commentator Stern Drew recently made these allegations. He called attention to XRPScan data showing that Coinbase cut its reserves from 780 million XRP to 199 million within weeks, a drop of 69%.
Mounting Allegations
He alleged that Coinbase executed much of the selling during thinly traded hours, typically between 2:00 AM and 5:00 AM UTC, when the market could be most vulnerable.
3/🧵
💡 Suspicious Patterns
•72% of the dump volumes hit low-liquidity hours (2–5AM UTC).
•Coinbase routed sales via multiple exchange wallets, fragmenting to disguise flows.
•Volume spikes suppressed rallies that would have broken $1.20 resistance.This isn’t coincidence —…
— Stern Drew (@SternDrewCrypto) September 5, 2025
According to him, the trades appeared fragmented across multiple wallets, which he described as an attempt to conceal flows. Drew suggested that these moves repeatedly cut off rallies that might have pushed XRP past a major resistance zone.
Drew further speculated on Coinbase’s motives. He linked the exchange’s long-standing ties to Ethereum-focused organizations and alleged that certain Wall Street firms may want lower prices to allow institutional players to accumulate XRP at a discount.
He also floated the idea that weakening XRP could reduce Ripple’s bargaining power in U.S. policy discussions. However, none of these points comes with direct proof, and they remain speculative allegations.
To back his theory, Drew cited what he called an “XRP suppression index.” He claimed the index showed a strong 0.87 correlation between Coinbase’s activity and XRP’s inability to break higher. The market pundit insisted no other exchange displayed the same pattern.
Where Does BlackRock Come in?
Drew also claimed that some of the reduced holdings ended up in wallets tied to BlackRock’s custodial services. At the same time, other portions moved to Hong Kong over-the-counter desks just before Ripple announced new expansion plans in Asia.
BREAKING: 🇺🇸 DATA FROM XRPSCAN SHOWS COINBASE $XRP HOLDING HAVE BEEN REDUCED 69% IN 3 MONTHS!
FALLING FROM 780 MILLION $XRP TO 199 MILLION BETWEEN JUNE & AUGUST! pic.twitter.com/Vn5cdM5RMt
— Good Morning Crypto (@AbsGMCrypto) September 7, 2025
Notably, another analyst, Abdullah “Abs” Nassif, raised similar concerns. He noted that Coinbase’s XRP reserves dropped by nearly 70% between June and August, describing the decline as a development too large to ignore.
Still, others believe something else could be happening. For context, Coinbase formed a partnership with BlackRock in 2022, giving institutions access to digital assets through the Aladdin platform. Some argue the decline in Coinbase’s XRP holdings may not signal heavy market selling but rather transfers to institutional custody accounts.
