These Factors Hold Bitcoin’s Price From Surging

The crypto market is struggling to recover these days following more drops in price for Bitcoin.

At the moment of writing this article, Bitcoin is trading in the red, and the most important crypto out there is priced at $7,841.20.

The coin was able to surpass the important $10k level more than once this year, but there are more factors that are keeping the price down.

Bitcoinist addresses three such factors in a recent article.

PlusToken scam dumping

Bitcoinist reported recently that at least 11,999 BTC started to move from the PlusToken scam into unknown addresses with a value of more than $107 million.

The splitting of this amount means that it’s easier to mix. Splitting the fraudulent BTC may be a sign that they are preparing for massive sell orders which will hinder BTC’s price recovery.

Bitocoinist wrote that even if this dumping does not occur, it’s likely the very fact that it’s on the move may cause traders to exit into more stable-valued assets.

Coronavirus

This is a controversial issue because more analysts suggested a while ago that the coronavirus would be helping BTC price rise since the asset is used by funds to hedge against traditional finance risk.

Bitcoin’s recent drop has been correlated with the coronavirus by various analysts.

This is a bit unexpected because when hell broke loose a while ago, analysts believe that it could lead to a surge in BTC as people saw the coin as a safe haven.

Now, voices in the crypto space suggest that the impact of coronavirus on crypto events, and mining facilities could have something to do with it.

On the other hand, it’s not clear how mining will affect interest in BTC.

Miners hoarding

After the halving which is scheduled for May, BTC owners are more likely to hold on to their assets if they predict that the supply will decrease and demand increase.

“Fortunately, if miner hoarding is the primary reason for the major pull-back, then there’s nothing for the community to worry about in the long-term. It shows that the trading behavior which appears to be bearish could actually have underlying bullish beliefs that Bitcoin demand will increase after the mining event,” according to Bitcoinist.

They note that the pull-back may be only temporary in that case.


Companies Mentioned

CoinMarketCap
CoinMarketCap

CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.

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Eduard Watson Author

An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.

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