A wave of massive ETH sales linked to the PlusToken affair, an old Ponzi scheme that wreaked havoc in 2019, is bringing back the ghosts of the past. This situation, which is reminiscent of the events of 2021, puts pressure on the price of Bitcoin, and sows panic among certain investors.
Renewed pressure by ETH sales on the market
Bitcoin is once again in the spotlight, but this time for the wrong reasons. According to the data collected, the further fall in the price of Bitcoin this Wednesday, October 9, 2024, with a level at $60,300 at the close of the markets, is largely attributed to a massive sale of ETH from PlusToken, a pattern Ponzi scheme dismantled by the Chinese authorities in 2019. This very Wednesday morning, over 7,000 ETH moved to exchangeswhich fuels growing concern. Indeed, these sales, if they continue, could put enormous pressure on the market, in particular on altcoins, but also on Bitcoin itself.
PlusToken, which caused billions of dollars in losses before its takedown, held large amounts of crypto at the time, including 194,000 BTC and 830,000 ETH. Activities on these funds are reviving speculation on a possible liquidation. In 2021, the first sales of BTC held by PlusToken contributed to the price drop, a pattern that could well repeat itself, this time with ETH. This situation would quickly deteriorate if larger liquidations are observed on the markets in the coming days.
Bitcoin and cryptos facing a risk of contagion
If the market today focuses on ETH, Bitcoin is not immune. Indeed, a wave of selling of Bitcoin held by PlusToken or other similar wallets could ignite the markets even more. Moreover, rumors are circulating regarding a possible movement of Bitcoin towards certain exchange platforms. If these funds are liquidated, we could see a sharp drop in Bitcoin prices, similar to last year. The situation could also affect other major cryptos, with a general drop in values.
Additionally, the impact of these sell-offs extends beyond individual investors. Institutional investors, who had started to regain confidence after the growing adoption of Bitcoin ETFs and other financial products linked to cryptos, could review their positions. Thus, a new wave of volatility would reduce the appeal of these products.
Too much influence from these massive sales could disrupt Bitcoin, but also the market as a whole. However, these movements can also offer buying opportunities for seasoned investors. It remains to be seen whether this new shock will mark the entry into a new era of volatility, or whether the markets will find balance after this tense episode.
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