The crypto market has not developed too well in the past day or two. After a dramatic high of $ 9,200, Bitcoin fell below $ 8,200 on Sunday, surprising many traders as they expected the leading cryptocurrency to continue rising.
A well-known analyst, Jacob Canfield, has recently highlighted three key catalysts that are likely due to the rapid fall in cryptocurrency prices across the board.
The price of Bitcoin (BTC) has risen by more than 10 percent in the last 24 hours and hit an intraday low of $ 8,169. At the time of writing, the contested coin was $ 8,336.
The recent collapse certainly surprised many traders with longs worth over $ 92 million that were liquidated in a brutal hour. However, the writing was on the wall for eagle-eyed analysts who followed the money from PlusToken fraudsters.
Corona virus affects all markets, including crypto
First, the impact of the outbreak of COVID-19, a respiratory disease caused by coronaviruses, on global markets.
After an extremely strong rally in recent months, markets across the board, from American stocks (Dow Jones, S & P 500, etc.) to crypto assets, have been hit hard in the past few weeks. It is feared that the spread of this deadly disease, the death rate of which is 20 times that of the flu, will irreversibly damage the economy.
PlusToken continues to unload BTC
Bad actors who ran the largest cryptocurrency Ponzi program in history broadcast more than 13,000 BTC the day before this massacre.
According to trader Kevin Svenson, this is not a typical sell-off since the market is most likely to be hit by a lone whale. He states that PlusToken is trying to suppress any bullish move from Bitcoin.
Bitcoin miners hoard coins
Second, Bitcoin miners have started hoarding the coins they mined.
Charlie Morris, founder of the ByteTree cryptanalysis platform, recently suggested that this trend historically "coincides with negative returns and reflects a weaker market offer". He explained that when miners hoard, they are doing so to "protect the market that is too soft to be sold", and suggested that these players believe Bitcoin has the potential to go down fall than it already is when more sales pressure is introduced.