Bitcoin and other cryptos’ prices dropped soon after a plunge in oil prices. Besides, Bitcoin lost its positions as a result of a crypto scam committed by PlusToken.
Today, the beginning of the trading session has become the worst this year. After a massive sell-off on Sunday, markets have not managed to recover. As a result, cryptocurrencies have suffered significant drops. Bitcoin price declined by 9.32% in 24 hours, Ethereum lost 10.48%, Litecoin dropped by 14.41%, XRP is 9.95% down. This list of cryptos that have become victims can be continued endlessly.
Notably, the Bitcoin price declined significantly in less than 45 minutes. At the moment of writing, it makes up $7,944. Despite being off 18% over the past month, it remains up 12% year to date. Yesterday’s closing was highly anticipated by traders, as analysts predicted the possibility of a bearish situation. On February 9, Bitcoin passed the $10,000 mark for the first time since September 2019, which allowed analysts to think so. However, their predictions were not lived up, with Bitcoin trading below $8,000.
Jehan Chu, a co-founder of blockchain startup Kenetic Capital, commented:
“For those who have long term investment horizons, bitcoin is absolutely a buy during these dips. We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long term investments in the digital future and it’s key asset Bitcoin will be a winning strategy.”
Other cryptos have also fallen. Ethereum is trading at $205.77, XRP is $0.209, Litecoin is at $50.33 mark, and Bitcoin Cash makes up $274.55 per coin.
In addition to this massive plunge, the market capitalization has also dropped. According to CoinMarketCap, the total value of the world’s cryptos was about $251.5 billion on Saturday night. Twenty-four hours later, it was down $26.43 billion.
Collapse in Oil Prices
Massive sell-off of cryptocurrencies and liquidation of long-term contracts on Sunday followed a plunge in oil prices. As we have reported, last Friday, the OPEC and non-OPEC allies failed to reach a consensus on cutting down oil production to control oil prices.
Further, Saudi Arabia cut down crude prices and opened its oil taps for the global market. As a result, international oil benchmark Brent crude has plunged nearly 31% to $31.02 per barrel. The year-to-date crude price dropped by 50%, which is the largest plunge since February 2016.
Another Trigger of Bitcoin Price Plunge
The situation in the oil market is not the only reason for cryptocurrencies’ failure. In particular, the Bitcoin price declined after a crypto scam.
Recently, the creator of multi-cryptocurrency wallet PlusToken tried to launder 13,000 BTC ($10.2 million). The company deposited these coins directly to mixing services within the past 24 hours.
They also did something similar after #BTC crossed above 10,000 this year.
They are slamming the market with sell orders.
Essentially we have a giant whale unloading after every move up.
— Kevin Svenson (@KevinSvenson_) March 8, 2020
Shortly after the crime, the prices plunged. And some believe the case is the main reason for the Bitcoin price drop.
The factors that influence prices are numerous. And currently, the leading one is the coronavirus outbreak that has turned the whole global market upside down.