The crypto market saw impressive gains in February. After soaring for weeks whilst the stock markets succumbed to intense selling pressure, cryptocurrencies finally joined in on the proverbial bleeding party.
Trader Jacob Canfield shared 3 major reasons why bitcoin feels agonizingly bearish after yesterday’s precipitous drop below $9,000. At press time, the OG crypto is exchanging hands at $8587.73, a drop of circa 5.88 percent over the last 24-hour period.
#1. The Novel Coronavirus
COVID-19 cases have now surpassed 100,000 and the death toll has risen to over 3,400 worldwide. This fast-spreading virus has undeniably spooked investors and put the global economy in peril.
In late February, the most ruthless and fastest plunge wiped off more than 3 trillion from the US stock markets. These stocks have continued trading in the negative territory despite the Federal Reserve implementing an aggressive rate cut on Tuesday, March 3.
According to Canfield, bitcoin is especially bearish because all markets are currently experiencing brutal sell-offs due to coronavirus anxieties.
#2. Miners Are Hoarding
Canfield opined that bitcoin miners hoarding their mined BTC is historically a strong bearish indication. He pointed to a Twitter thread by the founder of Byte Tree analytics firm, Charlie Morris.
Per Morris’ research, miners have recently been selling less than they mine. They are essentially hoarding so as to protect the market which is too fragile to sell into.
In the past, they have held onto their BTC in bear markets and sold during bull markets. However, Morris noted that this has nothing to do with the upcoming halving.
#3. PlusToken Scammers Are Back To Dumping Bitcoin
According to recent evidence, bitcoin linked to the Chinese PlusToken Ponzi scheme is on the move again.
One of the industry experts who has been keeping a close eye on the scammers’ wallets noticed that they are moving the stolen BTC to mixers. Typically, the Ponzi schemers mix BTC before dumping it on the market and this has oftentimes suppressed the prices.
Should these three reasons hold true for the coming weeks or months, it might well be time to put a brake on those auspicious BTC price predictions for 2020.
If there’s a silver lining for bitcoin bulls, it’s that miners’ rewards halving is less than two months away. This event could breathe new life into the bitcoin market.