Major Ponzi schemes influence the price of Bitcoin

Travis Kling, founder and chief investment officer of Ikigai Asset, said the price of Bitcoin was affected by major Ponzi schemes. Conformable In his view, the macro indicators indicate that Bitcoin should record substantial growth. However, the sales pressure generated by two of the largest Ponzi schemes on the crypto market is hampering the positive evolution of BTC.

Klong refers to Plus Token Wallet and OneCoin, which apparently sell millions of dollars worth of Bitcoin.

In November, PlusToken flooded the market with stolen BTC. Only one address has cleared more than 22,000 BTC this month alone, representing over 1,100 BTC per day. This represents only 11.8 percent of PlusToken’s 187,000 BTC.

At the same time, OneCoin has managed to persuade over 3 million investors worldwide to participate with up to $ 4.9 billion. The number of cryptocurrencies held by this Ponzi scheme is unknown, but Kling claims it plays an important role in the decline of Bitcoin.

Suspicious activity on Cloud Token

The analyst also referred to Cloud Token, a Chinese wallet provider that integrates all crypto assets on the same blockchain platform.

The company offers a questionable passive revenue program called Jarvis, which rewards users who store their cryptocurrencies in their wallets. By taking over user funds and using a high-frequency arbitrage trading bot, Cloud Token offers daily bonuses in the native CTO token.

In recent months, several users have reported that they were unable to withdraw their funds from the platform. Ronald Aai, Cloud Token’s technology director, revealed in a recent webinar that the company-funded withdrawals were indeed interrupted. The withdrawals will now be managed by a third party company called Ribbons. This allows the conversion of CTO tokens into other cryptocurrencies.

Pessimistic outlook for Bitcoin

After trading at a level of nearly $ 14,000 at the end of June, Bitcoin fell by over 50%. It reached $ 6,500 on November 25th. Since then, the cryptocurrency has failed to recover its losses. It fluctuates around $ 7,500 without much volatility.

It is very likely that major Ponzi schemes will continue to sell their cryptocurrencies held throughout 2020. This could cause the price of Bitcoin to fall further. Such a pessimistic scenario was also advanced by the analyst Peter Brandt, which believes that Bitcoin could reach $ 5,300 in the coming period.