The cryptocurrency market has been performing poorly for the past 24 hours. After impressively peaking at $ 9,200, Bitcoin returned below $ 8,200 on Sunday, a move that caught traders off guard, as they were expecting the top coin to rise further.
Nevertheless, renowned analyst Jacob Canfield recently unraveled three key catalysts that are believed to lead to the massive sell-off of Bitcoin.
If you're looking for bearish narratives, there are currently 3 that could be impacting #bitcoin
1.) Coronavirus (all markets selling off)
2.) Miner hoarding (typically strong bearish indication)
3.) PlusToken scam dumping on the market again. (They moved 19k bitcoin yesterday)
– Jacob Canfield (@JacobCanfield) March 7, 2020
"If you are looking for a reason for the price drop, there are currently 3 factors that can affect #bitcoin:
1.) corona virus (all markets are sold off)
2.) Miner hoardes coins (usually a strong bearish indicator)
3.) The PlusToken scam continues to dump in the market (they transferred 13k BTC yesterday) "
Factor # 1: corona virus affects all markets, including cryptocurrencies
First, the impact of the COVID-19 outbreak, a respiratory disease caused by the corona virus strain, on the global market.
A sharp rally in the past few months, markets such as the US stocks (Dow Jones, S&P 500, etc.) to crypto assets, have been hit with a fatal blow in the past few weeks. The scary thing is that the spread of this dangerous disease – which has a death rate 20 times higher than that of regular flu – will cause irreparable damage to economies.
Since the story was embraced by Western media, the Dow Jones index has dropped 14% from its all-time high, while commodities and cryptocurrencies have plummeted.
Although some argue that the collapse of the Bitcoin price is not related to a sell-off in other markets, analysts have observed a decline in the trading volume of major cryptocurrency markets. since the beginning of the epidemic. This shows that the crypto market lacks heavy liquidity, thereby increasing the ability to sell off as we have just witnessed.
Element # 2: Bitcoin miners are hoarding coins
Second, Bitcoin miners have begun hoarding the coins they mine.
Charlie Morris – founder of cryptocurrency analysis platform ByteTree, recently suggested that this trend has historically coincided “with negative returns and reflects weaker market bids.” He explained that when miners dump coins – they do so to protect the capital market that is too soft to sell, showing that these players think Bitcoin has a lower potential than before if selling pressure increased. .
#bitcoin miners have recently started to sell less than they mine. Historically, that has coincided with negative returns and enrich a recorded market bid. Miners are hoarding because they want to protect the market which is too soft to sell into. Bottom row turned green. pic.twitter.com/JPy0RqwEwQ
– Charlie Morris (@AtlasPulse) March 4, 2020
"#Bitcoin miners have recently started selling less than they mined. Historically, that coincided with negative returns and reflected weaker market bids. Mining companies are hoarding because they want to protect the market that is too soft to sell. The bottom line turns green. "
Element # 3: The Plus Token scam moves money again
And finally, Bitcoin blockchain researcher Ergo discovered the wallet of Plus Token – a multi-billion dollar cryptocurrency scam that sent 13,000 Bitcoins (more than $ 100 million) into devices that initially scrambled coins. this week.
Scammers have previously made this move before sending the coins to exchanges, then perhaps selling the money to fiat, which reduces the price of Bitcoin if there is not enough buyer liquidity to Absorb sell orders.
~ 13k in new PlusToken mixer deposits in last 24 hrs.
Almost all previous mixer deposit change has entered mixing, confirming my theory.
Distributions still on / off. Much slower than September and November.
New report and full sit rep imminent. pic.twitter.com/vwrBuVk272
– Ergo ∴TxIDs Or It Didn't Happen∴ (@ErgoBTC) March 6, 2020
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Translated by ToiYeuBitcoin
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