Chinese crypto journalist Colin Wu has shared data provided by CryptoQuant on-chain data provider based in South Korea that provides one of explanations of the massive Bitcoin price fall that occurred earlier this week.
CryptoQuant chart shared by Wu shows that on May 5 and 6, short-term holders moved a comprised 11,760 Bitcoins to multiple crypto exchanges. This crypto had been held for less than three months prior to that, the journalist commented.
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 held for less than 3 months flowed into the exchange. pic.twitter.com/aUCE9hiAtk
— Wu Blockchain (@WuBlockchain) May 7, 2022
Another likely reason of the BTC fall is the decision to raise the interest rate by half a percentage point, announced by the US Fed Reserve. This was the biggest hike in twenty-two years. Bitcoin first demonstrated stability but then suddenly lost around eight percent, pulling the whole crypto market along.
The flagship global crypto nosedived along with the stock market and its major indexes – Nasdaq 100, S&P 500, etc.
At the time of writing this story, Bitcoin is changing hands at $35,949 after falling from the $39,500 zone on May 5.
Arman Shirinyan
Denys Serhiichuk
Valeria Blokhina