Bitcoin collapse in the past two days explained by this report
Recent CryptoQuant Analysis Data Provides One of the Reasons for the Recent Drop in Bitcoin Price
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Chinese crypto journalist Colin Wu has shared data provided by CryptoQuant on-chain data provider in South Korea, which offers one of the explanations for Bitcoin’s massive price drop that occurred earlier this week.
CryptoQuant chart shared by Wu shows that on May 5-6, short-term holders moved 11,760 Bitcoins to multiple crypto exchanges. This crypto was previously held for less than three months, the journalists noted.
According to CryptoQuant data, the decline in the past two days may be dominated by short-term holders. On the 5th and 6th, a total of 11.76k “young” BTC that had been held for less than 3 months poured into the exchange. pic.twitter.com/aUCE9hiAtk
— Wu Blockchain (@WuBlockchain) May 7, 2022
Another likely reason for BTC’s decline is the decision to raise interest rates by half a percentage point, as announced by the US Fed Reserve. This was the largest increase in twenty-two years. Bitcoin first showed stability, but then suddenly lost about eight percent, sweeping the entire crypto market.
The global cryptocurrency’s flagship has plunged alongside the stock market and its major indices – Nasdaq 100, S&P 500, etc.
At the time of writing this story, Bitcoin is changing hands at $35,949 after falling out of the $39,500 zone on May 5.