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Bitcoin Collapse Over Past Two Days Explained by This Report

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Sat, 05/07/2022 - 20:00
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Yuri Molchan
Recent analytics data from CryptoQuant offers one of explanations of the recent fall of Bitcoin price
Bitcoin Collapse Over Past Two Days Explained by This Report
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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.

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.

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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.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.