Prices are rattling down
The cryptos end the week with a massive breach. The Bitcoin falls far below the 9000 USD limit and many Altcoins have to record losses in the double-digit range. What are the limits now and what is the trigger behind the current slump? We take a look at what is happening in the market.
Bitcoin price in detail
At the time of this article the Bitcoin exchange rate is 8334 USD. This corresponds to a daily loss of about 6.5%. From a bearish perspective, the BTC could be heading straight for the support zone at USD 8000 after falling below the USD 8300 mark. At the moment, there are few signs of a quick pullback. For this to happen, the BTC would have to break the resistance at approx. 8500 USD. Subsequently, the next hurdle would be at the 200-day-line (8700 USD).
The turbulent market
The current market slump underlines an important principle: The crypto space reacts quickly! After the “digital gold” had settled between 9000 USD and 9250 USD for several days, the price plummeted abruptly by over 500 USD. A few hours later, a loss of just under USD 900 was recorded. But what is the trigger behind the current sales?
Many experts suspect that the Plus Token Scam is directly related to the current BTC Crash. According to this, the fraudsters tried to launder a respectable sum of 13000 BTC. Various Bitcoin mixers were used for this. This is shown in data from the cryptanalyst ErgoBTC. The South Korean Multi-Wallet System Plus Token had carried out an exit scan the previous year and in doing so had seized more than 3 billion US dollars. The effects still affect the crypto space today.
Prices react to Plus Token Scam
The BTC was trading for approximately USD 9100 at the time of the transactions, so the 13000 Bitcoin had a value of approximately USD 120 million. When such sums hit a highly volatile market, a chain reaction occurs. The bearish reports pull the Bitcoin price down in a very short time. This also pulls the Altcoins with the “abyss”. A problem that is due to the high BTC dominance. No wonder that such fraud machines gnaw at the reputation of serious block chain projects. Cautious investors are distancing themselves by any reports.
The Altcoins experience a pitch-black Sunday. Ethereum rattles down a whopping 10%. Due to the current downtrend, ETH is approaching the 200 USD limit with big steps. The Bitcoin Forks Bitcoin Cash (approx. – 15 %), Bitcoin SV (approx. – 12 %) and Litecoin (approx. – 12 %) are hit even harder. Chainlink still delivers the best performance in the Top 30 with a daily minus of approx. 2%, which brings a position in the coveted Top 10 within sight.
The current market slump shows how vulnerable the crypto market is. Until the weekend, it looked as if the “digital gold” would live up to its reputation as a crisis-proof “store of value”. While the corona virus pushed the traditional markets into a tangible crisis, Bitcoin seemed to be able to isolate itself. The current development, however, speaks a different language.