Some analysts think the current market instability is the reason behind the recent decline of Bitcoin, while others feel the Plus Token scam is the reason. really.
Bill Herrmann – CEO of Wilshire Phoenix, believes that the recent price drop of Bitcoin is due to fluctuations in the traditional market. “The recent fall in Bitcoin's price has been a result of the sudden and intense decline of most currencies over the past few weeks,” he told CoinTelegraph.
"In periods of extreme volatility, which often occur after panic – mostly retail investors, whether it's Bitcoin or stocks, sell first and ask questions later. Investors need to increase cash and quickly – should sell everything. I think once the situation settles, Bitcoin and some other assets will have a better price to buy. "
Several factors have created market instability
Over the past several weeks, much of the traditional market has been fearful, unstable, and suspicious due to the impact of the ongoing corona virus crisis.
The Dow Jones (DOW) dropped more than 2,000 points in March 9 only. In addition, the oil market was also heavily affected, down more than 20% on the same day.
Bitcoin also did not escape this serious downtrend, the king dropped from $ 10,000 on February 24 to $ 7,650 on March 9.
Emmanuel Goh, CEO of crypto analytics firm Skew, also attributed the recent price action of Bitcoin to the overall performance of the global market.
“In my opinion, the function of a safe-to-fly flight is impacting the global market on the spread of corona virus and today is the oil news,” he said, referring to that investors decided to sell their speculative assets to replace them with more stable assets.
Experts say that the Plus Token is suffering from the sell-off of Bitcoin
PlusToken – a notorious cryptocurrency Ponzi scheme, some project operators were arrested in China in mid-June 2019. Since then, cryptocurrency analysts have been tracking wallets with In regards to this scam, they speculated that some members of the team were still selling Bitcoin and causing a price cut.
Ergo – a researcher who has been following PlusToken's wallets for months, tweeted on March 6 that the scam had moved 13,000 BTC. A few days later, the Bitcoin price began to decline.
Cryptocurrency YouTuber DataDash said he thinks the criminals behind Plus Token are the reason why Bitcoin has plummeted in the past few days.
“It may not be just because of global fears in traditional markets – and that could seriously affect cryptocurrencies, but is there really only one seller putting pressure,” he said. in a recent video mentioning PlusToken.
“This could be a time when they are looking to liquidate coins, launder money and eventually cash out.”
It is difficult to determine the true cause of the recent Bitcoin price plunge. There is certainly a debate between the two sides, one is blaming the instability of the traditional market and the other is blaming Plustoken.
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According to CoinTelegraph
Translated by ToiYeuBitcoin