icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
31 May, 2021 14:57

Bitcoin headed for second-largest monthly drop on record

Bitcoin headed for second-largest monthly drop on record

The world’s top crypto, bitcoin, could see its second-biggest monthly percentage decline on record, as the digital asset’s downturn in May exceeded the 37% drop seen in November 2018.

Bitcoin was trading near $36,426 at 14:28 GMT on Monday, with losses for May totaling almost 37.5%. It is just short of the record 40% slide in September 2011, according to Bitstamp data. 

In a major selloff, the cryptocurrency nosedived to around $31,227 on May 24 – over a 50% decline from its mid-April peak.

Fears of China’s crackdown on cryptocurrencies, along with the coming regulations in the United States, and controversial statements from Tesla CEO Elon Musk, have all been putting pressure on the crypto market.

Also on rt.com Major Chinese crypto exchange suspends domestic bitcoin mining operations

Musk’s unexpected announcement this month that Tesla was suspending purchases of its vehicles using bitcoin, due to environmental concerns, crushed hopes for widespread corporate adoption raised by the carmaker’s decision to adopt bitcoin in February.

According to blockchain analytics firm Glassnode, the price crash was driven mainly by panic selling by new investors who bought coins during the first-quarter bull run. Analysts say that a sustained accumulation by large investors might be needed to restore battered market confidence.

For more stories on economy & finance visit RT's business section