Massive Sale Of ETH, Bitcoin Wobbles, Crypto Market On Alert!

A wave of massive ETH sales related to the PlusToken case, a former Ponzi scheme that wreaked havoc in 2019, resurfaces the ghosts of the past. This situation, reminiscent of the events of 2021, puts pressure on the price of Bitcoin, and causes panic among some investors.

Renewed pressure from ETH sales on the market

Bitcoin is once again in the spotlight, but this time for the wrong reasons. According to collected data, the new drop in the price of Bitcoin this Wednesday, October 9, 2024, with a level at $60,300 at market close, is largely attributed to a massive ETH sale from PlusToken, a Ponzi scheme dismantled by Chinese authorities in 2019. Just this Wednesday morning, over 7,000 ETH were moved to exchange platforms, fueling growing concern. Indeed, these sales, if they continue, could exert enormous pressure on the market, particularly on altcoins, but also on Bitcoin itself.

PlusToken, which caused billions of dollars in losses before its dismantling, held large quantities of cryptos at the time, including 194,000 BTC and 830,000 ETH. Activities on these funds reignite speculation about a possible liquidation. In 2021, the initial sales of BTC held by PlusToken contributed to the price drop, a scenario that could well repeat itself, this time with ETH. This situation could quickly deteriorate if larger liquidations are observed on the markets in the coming days.

Bitcoin and cryptos face a risk of contagion

If the market is currently focused on ETH, Bitcoin is not spared. Indeed, a wave of Bitcoin sales held by PlusToken or other similar wallets could further inflame the markets. Rumors are circulating about a possible Bitcoin movement towards certain exchange platforms. If these funds are liquidated, we could witness a sharp drop in Bitcoin prices, similar to last year. The situation could also affect other major cryptos, with a general decline in values.

Moreover, the impact of these massive sales goes beyond individual investors. Institutional investors, who had started regaining confidence after the growing adoption of Bitcoin ETFs and other financial products related to cryptos, might reconsider their positions. Thus, a new wave of volatility would reduce the appeal of these products.

An excessive influence of these massive sales could disrupt the 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 upheaval will mark the start of a new era of volatility or if the markets will find balance after this tense episode.