Market Liquidations Cause Cascade in Bitcoin Price

The price of bitcoin (BTC) dropped sharply over the past 24 hours, down 5 percent as of 16:00 UTC. Although the leading cryptocurrency crossed above a bullish $9,000 threshold as recently as last week, a confluence of events has led traders to hit the sell button. 

Coronavirus fears continue to weigh down traditional markets Monday, with the Dow industrials down 7 percent and the S&P 500 index down more than 5 percent. 

In crypto markets, the selling of 13,000 BTC by China-based PlusToken is fueling speculation operators of the alleged Ponzi scheme are attempting to liquidate large holdings, pushing prices lower. 

“Everything is getting pummeled and even traditional safe havens like gold are barely up today,” said Rupert Douglas, head of institutional sales for digital asset management firm Koine. “There is only one asset class that people are piling into: U.S. Treasuries.” 

The moves may be more about large holders conducting business as usual than worries about larger…