Chinese crypto journalist Colin Wu shared the latest Bitcoin data provided by South Korea-based on-chain data platform CryptoQuant. The data in question relates to the massive Bitcoin crash that occurred earlier this week.
CryptoQuant shared by Wu graphshows that on May 5 and 6, short-term holders moved 117,600 Bitcoins to multiple crypto exchanges. Colin Wu said that the Bitcoins in question were held by their investors for less than three months.
“According to CryptoQuant data, the drop over the last two days may have been controlled by short-term holders. On the 5th and 6th, a total of 117,600 “young” BTC flowed, held for less than 3 months.”
Another possible reason for the BTC drop is the decision by the US Fed Reserve to increase the interest rate by half a point. This was the biggest increase in twenty-two years. Bitcoin stabilized at first, but then suddenly dropped around eight percent and dragged the entire crypto market down with it.
The flagship cryptocurrency, the stock market and its major indices – Nasdaq 100, S&P 500, etc. went down with it. Bitcoin is at $ 35,949 at the time of writing, after falling from the $ 39,500 region where it was traded on May 5.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.