Bitcoin Dips Below $61K Amid PlusToken Coin Movements

Cryptocurrencies faced a downturn on Wednesday, with Bitcoin (BTC) falling below $61,000, while Ether (ETH) slipped 3%. This decline comes as reports emerged about the movement of seized PlusToken-related coins to exchanges, raising concerns about potential selling pressure in the market.

Key Takeaways

• Bitcoin dipped to $60,400, down 2.4% in 24 hours.

• Ether fell by 3.2% during the same period.

• Approximately 7,000 ETH, valued at $16 million, were moved to exchanges.

• U.S. federal prosecutors charged several crypto firms with market manipulation.

Bitcoin's Decline

Bitcoin started the day around $62,000 but quickly lost ground, closing at $60,400. This decline is particularly notable as it contrasts sharply with the performance of U.S. stocks, which reached new highs. The movement of PlusToken-related coins is believed to be a significant factor contributing to this drop.

PlusToken Scheme Impact

The PlusToken Ponzi scheme, which was shut down by Chinese authorities in November 2020, involved the seizure of nearly $4 billion worth of cryptocurrencies, including Bitcoin and Ether. Recent reports indicate that a portion of these seized assets is being moved to exchanges, which could signal an impending sell-off.

• Seized Assets: Nearly $4 billion in crypto was seized from PlusToken operators.

• Recent Movements: 7,000 ETH, worth $16 million, were transferred to exchanges in the last 24 hours.

Market Manipulation Charges

In a surprising twist, U.S. federal prosecutors have charged several crypto trading firms, including Gotbit and ZM Quant, with market manipulation and fraud. This news has led to unusual price movements in some lesser-known tokens.

• Robo Inu (RBIF): This token saw a brief surge of over 100% following the news, although it later stabilized at a 20% increase.

• NexFundAI Token: Created for the investigation, this token experienced a staggering 3,500% increase before trading was disabled.

Traditional Markets Diverge

While cryptocurrencies struggled, traditional markets thrived. The S&P 500 closed at an all-time high, and the tech-focused Nasdaq rose by 0.6%. The 10-year U.S. Treasury rates also climbed to a two-month high of 4.08%, reflecting investor sentiment following the Federal Reserve's recent meeting.

• S&P 500: Closed at a new all-time high.

• Nasdaq: Increased by 0.6%.

• 10-Year Treasury Rates: Rose to 4.08%.

Conclusion

The recent dip in Bitcoin and Ether prices highlights the volatility of the cryptocurrency market, particularly in light of external factors such as the movement of seized assets and regulatory scrutiny. As traders navigate these challenges, the divergence between crypto and traditional markets raises questions about future trends in both sectors.

Sources

• Bitcoin (BTC) Price Dips Below $61K, Ether (ETH) Slips 3% as PlusToken Coins Moved to Exchanges, CoinDesk.