Bitcoin is on track for the second-largest record monthly percentage drop, despite bouncing from Asian lows.
The cryptocurrency was converting close to $ 36,200 at 9 a.m. UTC, accounting for a 37.5% loss in May. The price hit a low of $ 34,195 this morning.
The monthly drop is the 37% reduction seen in November 2018 and is short of just a 40% slide record in September 2011, according to Bitstamp.
Ether, the second-largest cryptocurrency, is ending in May, down 12%, its first monthly loss since September 2020.Meanwhile, gold has risen 7%, a monthly increase that It̵7;s largest since July 2020 and the S&P 500 has little changed. Months on data from TradingView
The bitcoin market looked weak earlier this month amid selling pressure from whales or big investors with the ability to make or break price trends. Cryptocurrencies have gained immense popularity after Tesla rejected Bitcoin as a payment method, citing environmental concerns. The move raised hopes of broad corporate acceptance stemming from the automaker’s decision to adopt bitcoin in February.
Bitcoin fell from $ 58,000 to nearly $ 30,000 in the eight days through May 19 and has been trading sideways ever since, with a 200-day simple moving average (SMA) above $ 40,000.
According to blockchain analytics firm Glassnode, most of the price failures were due to the panic sell-off by new investors who bought the coin in the first quarter. At the same time, holders and institutions are buying signs of confidence in the long-term price trend of the cryptocurrency.
Supply held by the Whale Agency – a single participant-controlled group of addresses with at least $ 1,000 – has increased by over 25,000 BTC to 4.149 million since May 19.