Bitcoin (BTC), the largest cryptocurrency, is slowing this month, marking its first monthly decrease since the beginning of the year. This decrease is most likely the result of the cryptocurrency market losing momentum and enthusiasm. Bitcoin fell almost 6% in May, making it the digital asset’s lowest month since the FTX meltdown.
Earlier this year, Bitcoin experienced a tremendous rise, increasing by %84 from the start of the year until April, temporarily touching $31,000. However, the surge has stalled as a result of external factors such as liquidity and tighter monetary policies. There has been a lot of news about cryptocurrency legislation in recent months.
The failure of several US banks in March sparked an initial boom in Bitcoin. Concerns about fiat currencies, which have been argued for years, appeared to be validated. Regardless, this was merely another temporary price increase.
To regain consumer interest in Bitcoin and other cryptocurrencies, the sector should demonstrate real-world utility in relation to the Web3 world in general. Congestion and transaction costs weighed on Bitcoin in May, although these difficulties have now subsided.
Traditional assets such as stocks, bonds, and gold have outperformed cryptocurrency in the last month. Artificial intelligence (AI) equities, such as Nvidia (NVDA), have also enjoyed a tremendous surge in recent years.
Meanwhile, investors are anxiously watching the ramifications of the US debt-limit agreement. To prevent a potential default, the US Congress is hurrying to ratify this agreement by June 5.
Conclusion
Bitcoin is currently selling at approximately $27068, a long way from its top of $65,000 in 2021. As the crypto market cools, attention is shifting to ongoing business developments, prospective regulatory changes, and the developing landscape of digital assets.
