CBX Weekly Newsletter // 18 December 2019
- Bitcoin Hits 3-Week Low
- Chainalysis Report on PlusToken Blamed for Bitcoin Dump
- Matic Crashes over 70% in One Hour
Bitcoin Hits 3-Week Low
Bitcoin continues to decrease in price having a worse week than the previous one, the price is at $6,600 on CBX and other exchanges at the time of writing, with the next support at $6,500 which was the low of November.
Experts in the market believe that Bitcoin alongside the crypto market will find a bottom soon. However, many speculate that the price could still go lower before changing the trend, with supports at psychological handles such as $6K, $5.5K, $5K, etc…
Some analysts are looking at exchanges that allow Margin Trading and although Short positions have remained somewhat unchanged, Long positions have increased substantially, maybe some traders expect a bounce around that level.
(ETH/USDT Weekly Chart)
Following up let’s look at the Altcoin market, taking Litecoin (LTC) and Ethereum (ETH) as references, we see the story is rather different than Bitcoin because they have reached new lows already, and have decreased more percentage-wise. This is increasing the Dominance of Bitcoin in the market which is at 69%.
The market capitalization of the whole Crypto-market is at $184 Billion.
Chainalysis Report on PlusToken Blamed for Bitcoin Dump
In a matter of minutes, Bitcoin slipped 4 percent, to $6,800 from $7,085 while other major altcoins lost over 10% of their value without any relevant news on the market.
Some analysts quickly found out a new Chainalysis’ report published earlier that day, saying that 20,000 BTC and 790,000 ETH (about $240 million combined) remain likely controlled by a company believed to be a ‘Ponzi-scheme’ named PlusToken.
Further, Chainalysis claims $185 million in stolen bitcoin have already been liquidated by individuals related to PlusToken.
Six employees from PlusToken were arrested and extradited to China. However, The arrests occurred the week when bitcoin reached its 2019 peak of $13,970. Since then, the whole market has entered a downtrend that Chainalysis wouldn’t blame PlusToken-related accounts for the drop of bitcoin’s price solely, however, their analysts claim that it impacted in the volatility of the digital currency which ultimately affected the price.
Matic Crashes over 70% in One Hour
For a few weeks, Matic was the only well-performing cryptocurrency in the market, it saw an astonishing 220% gain since the end of November. And then in a matter of minutes, it was all gone, crashing over 80% in less than 2 days.
Matic is an Ethereum off-chain scaling solution utilizing the Plasma framework, it’s a very respected project alongside Blockchain experts not only because it’s a scaling solution for Ethereum but also because it has been following the roadmap milestones and constant achieving their targets.
That’s why people had a lot of faith in the project, also considering that it was backed by Binance which is one of the largest exchanges. Matic co-founder and COO, Sandeep Nailwal was accused of the dump because he controls most of the supply but he was quick to address these accusations by saying:
“Just woke up to this nightmare due to a distress call by someone It will be clear very shortly that we are not behind this, as some FUD accounts are trying to insinuate We will post a detailed analysis and we will come out stronger than ever from this evident manipulation.”
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