Due to the decline of Bitcoin and Ethereum yesterday and their respective prices retreated from technically important levels.

Some traders are pointing to concerns arising from a report about the “PlusToken” scam scheme as the reason for the decline in the prices of Bitcoin and other cryptocurrencies.

The drop began on Monday at 18:28 UTC, and in just seven minutes, bitcoin fell 4 percent, to $6,800, after being nearly flat at $7,085 according to data from Coinbase.

At the same time, Ethereum also declined, by 7%, and the price fell from $140 to $130.

Although it hasn’t seen any of these lows since November 25th, when the crypto markets suffered a temporary sell-off.

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With little news and the real reasons behind Bitcoin’s recent plunge, a new report by Chainalysis, which was published yesterday, states that the PlusToken scam controls 20,000 Bitcoin (now worth around $137 million) and 790,000. Ethereum (now worth about $102 million).

And the impact on the crypto market yesterday, according to a “Chinalysis” report, is that $185 million of stolen bitcoin has already been liquidated by individuals linked to the “PlusToken” scam.

Six people associated with PlusToken have been arrested and extradited to China from Vanuatu for their involvement in operating this fraudulent scheme.

According to the same source, Chainalysis, it was able to track down two billion dollars in cryptocurrency obtained from the victims.

Much of it goes to other “investors,” a prominent feature of traditional pyramid schemes.

As a reminder, the arrests occurred before Bitcoin reached its 2019 peak of $12,575.

Since then, the price of Bitcoin, which represents the lion’s share in the total market capitalization of the cryptocurrency market, has deviated.

Although Chainalysis did not confirm that PlusToken-linked account liquidations contributed to the Bitcoin price plunge, it did confirm that these amounts are causing increased volatility in the Bitcoin price.

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While one cryptocurrency trader attributed yesterday’s sharp decline to fears that stolen Bitcoin and Ethereum would be overwhelmed and cause a mass selloff.

He added his statement to source:

The Chainalysis report may have something to do with what’s happening, which sparked fear among the participants.

It’s not news. Not sure why this story pushed to the market.

People see things on Twitter and make their own conclusions.

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