By Ruben Colffer
Contributing Writer for Telegraph Local
In the past few weeks BItcoin prices have fallen abruptly declining close to 20% as the global cryptocurrency markets respond to a variety of headwinds.
The digital currency dropped to $7,625.19 this morning, according to CoinDesk, a news site that specializes in bitcoin and digital currencies.
CoinDesk also showed how it had lost above 17% of its value since surpassing $9,200 on Sunday.
“The BTC plunge quite clearly has a variety of causes,” said Tim Enneking, managing director of Digital Capital Management.
“The background cause was a healthy run-up to $10.5k in mid-February and an equally healthy pullback that had just about run its course,” he said.
“Near what would have normally been the end of that pullback, the PlusToken news hit, weakening markets that hadn’t quite yet begun to again show strength,” Enneking stated, referring to reports that scammers associated with PlusToken, a Ponzi scheme that drew funds from investors, were allegedly unloading their cryptocurrency holdings, putting the pressure on bitcoin prices.
According to Bitcoin Magazine, PlusToken attracted approximately $3 billion from investors.
CoinDesk reported that on Saturday individuals from PlusToken wallets transferred 13,000 units of bitcoin to different mixers, a move that is interpreted by analysts as the scammers selling their cryptocurrency.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, spoke to these developments, emphasizing that “concerns surrounding sale of BTC from PlusToken did cause initial panic and the global sell-off also impacted market sentiment.”
However DiPasquale also highlighted technical factors, stating that “the price falling below the 150-day moving average was a major setback, opening up lower supports at $8,000 and $7,800.”