This week has not been good for Bitcoin. In recent week, the prominently-leading cryptocurrency has lost its worth over 15% after closing a weekly low of $9,500 just the other day. At one time, the Bitcoin Fear and Greed Index, which estimates the market’s sensitivity regarding BTC’s price action, read an 11-extreme fear.
However, this figure seems completely capricious if we take into consideration the bullish run Bitcoin has observed from early to mid 2019, the data backs the index’s reading.
The website asserted that its research involves a fair mix of instability, market acceleration and volume, digital media vogues, surveys, Dominance and Google Trends to gain the summary regarding cryptocurrency financers’ sentiments.
As per usual, investors struggled and made the necessary corrections to understand what was behind this substantial Bitcoin crash. That was plannedly shifting to the positive-increase just a few weeks before the current fall. And one statement instantly became the go-to.
In a series of tweets this week, Dovey Wan, a crypto-centric risk capitalist, who works for Primitive Ventures, said she uncovered that ‘PlusToken Fraud’ may be throwing over thousands of Bitcoin, Ethereum and other crypto-assets on the open market. She explained that the yet-to-be- grabbed PlusToken partners in crime have been “moving their funds into small batches into exchanges, like 50 to 100 Bitcoin per batch”.
“I couldn’t find the chat but starting a few days ago, Chinese traders are saying someone has been dumping 100 BTC non-stop on Binance.”
This took straight to the large group supposition, that the shysters, which reportedly have gathered Bitcoin and Ethereum having the worth of Billions of dollars, were behind the current temporary fall.
Yet, as per the crypto analytics corporation TokenAnalyst, this exactly not be the case. Sid Shekhar, the co-establisher of analytics startup, has given a statement to Bloomberg. Stated the outlet that he does not think that any outgoing money transfers from PlustToken’s identified addresses are reaching in exchange-owned wallets.
However, they informed that some unknown cligue has been draining a part of funds into cryptocurrency mixing-type services, which makes it harder to identify definite data points for the corporation. This indicates that PlusToken perhaps throwing a few of its tokens via mixing-type services. Still, taking into consideration these mixing services are not able to manage billions of dollars worth of the funds. So, PlusToken probably has not been the prominent seller in this current decline.
Bounce Back of Flagship Cryptocurrency
Though the crash was substantial, the Bitcoin bounced back. And this happened for a good cause. Formerly, as per the Ethereum World News, Bakkt is all set to initiate its Bitcoin futures articles in the upcoming month.