Bitcoin is flirting with its biggest ever monthly drop as May ends.
Bitcoin, the largest cryptocurrency by market cap It is closing 36% in May at $36,509 per dollar. Finishing below $34,885 will make it the worst month of cryptocurrency unprecedented
Bitcoin Price Under Pressure in May Amid concerns the cryptocurrency market may face increased scrutiny from regulators both in the US and abroad.
Federal Reserve Chairman Jerome Powell spoke about the possibility that the central bank could create its own digital currency. And it’s looking at ways to tighten the rules, the Internal Revenue Service says, that more than $10,000 of cryptocurrency needs to be transferred.
Meanwhile, Chinese regulators this month took a number of steps to restrict the use of bitcoin and other cryptocurrencies. They announced plans to crack down on bitcoin mining and trading behavior. And the country’s banking association warned its members to refrain from doing cryptocurrency transactions. China is working on its own digital currency, the digital yuan.
Speaking of increased regulation comes as Tesla Inc. this month reversed its policy to accept bitcoin as a payment for its vehicles. It cited concerns about the environmental impact of mining. cryptocurrency
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Bitcoin in April hit a record high above $63,500 per coin. This was driven by the decision of a number of US companies to start investing in cryptocurrencies to diversify their cash.
Business Intelligence Software Provider MicroStrategy Inc. has invested more than $2.2 billion in bitcoin, while Tesla has parked about $1.5 billion in cryptocurrency.