Signs that asset manager Bitwise has sold part of its XRP holdings have been confirmed, increasing caution in the XRP market.

U.Today, a blockchain media outlet, reported on Aug. 6 local time that Bitwise disposed of about $3.58 million worth of XRP.

The move is drawing attention because Bitwise has steadily bought XRP since launching an XRP spot exchange-traded fund late last year. In the market, there was a reaction that the sale was an unusual move that differs from the firm’s typical buying pattern.

In the background is XRP’s recent weakness. XRP has remained volatile for some time and is widening its decline, again testing levels near its lowest in weeks. Against this backdrop, market participants are viewing Bitwise’s sale not as a simple isolated trade but as an example of institutional investors starting to respond more cautiously to current market uncertainty.

Some commentators said a prolonged slowdown in XRP prices is increasing anxiety among both retail investors and large holders. They see the ongoing price slowdown as stoking fear, which has led to an interpretation that institutional investors have begun to trade more cautiously.

Still, the market is not immediately concluding that the sale reflects pessimism by Bitwise. Market participants see the move as a temporary response to a broader shift in investment sentiment. That has also produced a view that it is difficult to draw conclusions from this transaction alone about how Bitwise assesses XRP.

XRP’s monthly trend is also being cited as a factor weighing on the market. XRP started August relatively strong, but weakness has become clear in recent days, pushing it down to a price range not seen in weeks. XRP is currently trading around $1.04.

Looking at past trends, August has been seen as a relatively weak month for XRP. Annual records have repeatedly shown cases of poor performance in August, raising the possibility of a similar pattern this month. In this situation, Bitwise’s partial sale is drawing market attention as an indicator of whether it is a simple portfolio adjustment or a signal that a conservative response by institutional funds is beginning.

For now, key points to watch are whether XRP’s price weakness continues further and whether Bitwise’s trade ends as a one-off. If XRP fails to rebound from a weak zone, caution could grow further among both institutional and retail investors.

JUST IN: Bitwise clients sell $3.58 million worth of $XRP. pic.twitter.com/rJDXblN8Tl