CryptoQuant Head Reveals Real Reason Behind Bitcoin Crash
Summary
Bitcoin's on-chain data showed signs of overheating before the recent crash. Short-term holders' profit/loss margin spiked before the crash, indicating a potential trigger for the plunge. The profit level of short-term holders had spiked when Bitcoin broke past $40,000, leading to a large amount of unrealized profit. This pattern has been especially true for the pre-bull run phase of the cycle that Bitcoin is potentially in right now. The recent cooldown in the cryptocurrency was inevitable and had been brewing from an on-chain perspective. Bitcoin has made some recovery since its plummet, with the price floating around $43,400.
