Bitcoin Falls Below $61K, Ether Drops 3%

Cryptocurrencies sustained their downtrend on Wednesday as Bitcoin (BTC) fell below $61,000, diverging from an upward trend in U.S. stocks.

Bitcoin began the day at approximately $62,000 but plummeted during the latter hours of the U.S. trading session to around $60,400, marking a 2.4% decline within 24 hours. In contrast, Ether (ETH) held steady for a while before plunging 3.2%.

Concerns about potential selling pressure arose when reports surfaced regarding movements of cryptocurrencies linked to the PlusToken ponzi scheme. On Wednesday, observant analysts noted a significant transfer of around 7,000 ETH, valued at $16 million, to crypto exchanges, which could indicate attempts to liquidate these assets.

Earlier, Chinese authorities seized nearly $4 billion worth of crypto assets from PlusToken operators, including BTC, ETH, and DOGE, in November 2020.

Market Manipulation Charges

In another notable development, U.S. federal prosecutors charged several crypto trading firms linked to market manipulation, causing unexpected volatility in certain lesser-known crypto assets.

Economic Outlook

In traditional markets, the S&P 500 achieved a new all-time high, driven by tech stocks, while U.S. Treasury rates escalated, indicating a mixed sentiment about future interest rate decisions by the Federal Reserve.