Bitcoin fell below $ 35,000; what is the reason?

A leading market analyst recently tweeted that more than 11,000 bitcoins had been deposited into digital currency exchanges in two days, and said that the influx was from investors who had only been buying them for three months.

To Report Youtudi Colin Wu, a Chinese correspondent for digital currencies, recently shared data from CryptoQuant, a South Korean-based data chain company. These data explain one of the reasons for the huge fall of 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 that the retention period of these transferred bitcoins was less than three months, which indicates that this measure is for short-term investors.

Colin Wu said on Twitter:

From the cryptocurrency chart, it can be seen that the fall 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, up to 3 months after their purchase, entered the exchanges.

Another possible reason for the recent fall of Bitcoin is the US Federal Reserve’s decision to raise the bank interest rate by 0.5%, which is the largest sudden increase in the rate in 22 years. Following the announcement, Bitcoin was first able to maintain its steady trend; But then it suddenly fell by about 8%, dragging down the entire digital currency market.

The fall in the price of this digital currency coincided with the global stock market and major stock market indices, such as the Nasdaq 100 and the S & P500.