Wondering Why Bitcoin Hasn’t Returned To $13,000 Mark Yet? Here Are The Main Reasons
Despite numerous analysts and crypto worshippers predicting that Bitcoin will surpass the $13,000 mark, the king coin has continued to trade around the $10,000 mark and here are some reasons why.
Ponzi Scheme Theory
According to Primitive Crypto founding partner Dovey Wan, the Ponzi scheme is responsible for crashing the crypto industry.
On JUly 14 Dovey Wan alluded that PlusToken, a Chinese-based ponzi scheme had sold Bitcoin in Bulk. PlusToken was able to get 200,000 Bitcoin as well as more than 800,000 Ethereum from different investors in China.
She said in a tweet:
Wan claims that PlusToken has been transferring the Bitcoin to different exchanges and recently a cybersecurity firm Peckshield showed that in excess of 1,000 Bitcoin was sent to Huobi and Bittrex from PlusToken accounts.
If Wan’s theory is true then back to back trades of Bitcoin could be affecting the coin’s price in different exchanges.
The CME Bitcoin futures gap could be another reason keeping the coin below $10,000. A look at everyday charts reveals a gap of $870 between $7,177 and $8,050.
Bitcoinist compared the CME gap:
This is a gap of Bitcoin movement during the weekend when CME futures were closed.
Majority of traders are of the view that Bitcoin should revisit the $7,100 to $8,500 range in order to fully resume its highs again.
At the start of this week the stock market nosedived due to weakening macroeconomic factors and there have been fears that a recession is due to start soon going by treasury bonds.
The US treasury bonds have been on a tumble and analysts have warned that a recession could be on the way.
In addition, gold prices have dramatically increased and many investors view Bitcoin as the best alternative. As a result, the increase in inflow of Bitcoin investors has raised its market cap and value thereby leading to the price fluctuations.
However, the king coin is steadily increased its value and by press time it was trading slightly above $10,200.