Bitcoin Price Drops After the Massive Sell-off on Monday

Bitcoin Price Drops After the Massive Sell-off on Monday

Bitcoin has been rallying since the beginning of 2020, its price surpassing $10,000. The analysts expected that crypto would reach new records. However, Bitcoin fell along with the stocks and other equities on Monday. It traded at $7,625.19 on Tuesday morning, lowering by almost 20%.

It seems the crypto markets respond to a variety of headwinds worldwide. According to CoinDesk figures, the Bitcoin dropped down by more than 17% since surpassing $9,200 on Sunday. The crypto hit a two-month record low on Tuesday.

However, the coronavirus-caused economic turmoil isn’t the only reason for Bitcoin’s collapse. Tim Enneking, managing director of Digital Capital Management, thinks that the crypto’s plunge has several causes, one of them being scammers’ actions.

The crypto scammers seemingly decided that now it is a good time for another scheme as they get. News about PlusToken further weakened the markets that hadn’t begun to show strength again so far.

PlusToken is a Ponzi Scheme, which proprietors managed to scam the serious amounts of money from the investors. It promised returns between 10% and 30% per month, but instead seized the money, leaving the people without initial investment and the profits.

The scammers who associated with PlusToken were trying to unload their crypto holding and placing more pressure to decrease Bitcoin prices. Individuals, who control the PlusToken’s wallets moved 13,000 units of Bitcoin to so-called mixers on Saturday.

The experts interpreted that as the scammers selling their cryptocurrency, which caused the panic in investors and dropped the crypto’s price.

What do the Analysts Say? 

Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, stated that the global sell-off impacted market sentiment as well. He also added that the price falling below the 150-day moving average was a significant setback. It opened up lower supports at $8,000 and $7,800.

Furthermore, the experts worry about the coronavirus outbreaks. The news surrounding the epidemic caused “the proverbial bottom” to fall out of the digital currency markets – noted Enneking.