Real Reason Behind 10 Percent Bitcoin (BTC) Price Crash Revealed by Analysts

News
Sun, 03/08/2020 - 17:50
Alex Dovbnya
For those who are wondering why the Bitcoin (BTC) is down 10 percent, the writing was on the wall
Cover image via u.today
Contents

The price of Bitcoin (BTC) has tanked by more than 10 percent over the last 24 hours, touching an intraday low of $8,169. At the time of writing, the embattled coin is sitting at $8,336.

image by tradingview.com

The most recent collapse surely caught many traders off guard with more than $92 mln worth of longs liquidated in a span of one brutal hour. However, the writing was on the wall for eagle-eyed analysts who followed the money of PlusToken scammers. 

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PlusToken keeps unloading BTC

Bad actors who operated the biggest cryptocurrency Ponzi scheme in history transferred more than 13,000 BTC the day before this massacre happened. 

According to trader Kevin Svenson, this is not your typical sell-off since the market is most likely taking a hit from a lone whale. He states that PlusToken tries to suppress Bitcoin's every bullish move. 

Numerous massive sell-orders on the Bitfinex exchange that were opened just in a span of a few minutes.

Dovey Wan of Primitive Ventures describes PlusToken as 'a sword of Damocles' that continues to hang over the cryptocurrency market.    

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Bad guys pull all the strings 

While the idea of PlusToken ruling the roost in the cryptocurrency market might sound bizarre, it was actually proved by Chainalysis back in December. The crypto sleuth linked the $3 bln scam to every major Bitcoin dump in the second half of 2019. Notably, the Bitcoin price peaked in 2019 right after the Chinese police cracked down on the token. 

Chainalysis estimated that PlusToken had 20,000 more BTC to sell, which might mean that this nightmare might be already over for Bitcoin once the fraudsters cash in all their ill-gotten coins. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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