I read of someone transferring a billion dollars worth of bitcoin and some people speculated that if it hits exchanges, it would cause bitcoin to drop.Do you guys think this is the cause or maybe it's just a bear trap?
This sort of rumors are what causes panic in cryptocurrency .
There is even no official link to any website that state so or carried such news.
Moreover, if anyone trade their BTC which happens to be much in number, its not necessary suppose to cause panic. Bitcoin are meant to be owned, transact, used or spend. No one has the right to tell anyone how to spend their coins because of the fear of price decrease.