A leading market analyst recently tweeted that more than 11,000 bitcoins had been deposited in digital currency exchanges in two days, and said the influx came from investors who had been buying them for just three months.
Colin Wu, a Chinese digital currency correspondent, recently shared data from CryptoQuant, a South Korean-based data chain company, according to YouTube. These data explain one of the reasons for the huge decline in bitcoin in recent days.
The cryptocurrency chart published by Colin Woo shows that on May 5 and 6, short-term investors transferred about 11,760 bitcoins to several exchanges. Referring to the chart below, Wu said the retention period for these transferred bitcoins is less than three months, indicating that the measure is for short-term investors.
Colin Wu said on Twitter:
The graph of cryptocurrencies shows that the decline in prices over the past two days may be due to the dominance of short-term traders in the market. On May 5 and 6, a total of 11,760 bitcoins entered the exchanges, up to 3 months after their purchase.
Another possible reason for the recent decline in bitcoin is the decision of the US Federal Reserve to raise the bank interest rate by 0.5%, which is the largest sudden increase in interest rates in 22 years. After the announcement, bitcoin initially managed to maintain its stable trend, but then suddenly fell by about 8%, pulling down the entire digital currency market.
The decline in the price of this digital currency coincided with the global stock market and key stock market indicators such as the Nasdaq 100 and S & P500.
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