Analysts have been raised that the price of the cryptocurrency Bitcoin will end in ‘Cruel May’, recording the biggest drop in 10 years on a monthly basis.
According to CNN and Reuters on the 28th (local time), the price of Bitcoin has plunged more than 36% so far this month, the largest monthly decline since September 2011.
As the cryptocurrency market trades 24/7, including weekends, the situation remains to be seen, but if the current downtrend continues, May will end with the biggest drop in nearly 10 years, foreign media reported.
Bitcoin broke through the $64,000 mark last month and set an all-time high, but this month, bad news poured in, causing several sharp declines.
According to CoinDesk, a cryptocurrency information site, the price of Bitcoin stood at $35,493.61 as of 1:40 p.m. western time in the U.S. .
Compared to last month’s high, the price is almost cut in half.
The Bitcoin decline began with the mouth of Tesla CEO Elon Musk.
Bitcoin began to slide on the 12th, when Musk abruptly announced that he would stop paying for Tesla cars, pointing out the negative impact of bitcoin mining on the environment.
Since then, the U.S. Department of the Treasury has sharpened its sword in cryptocurrency tax evasion attempts, such as making it mandatory for the IRS to report transactions in cryptocurrencies worth more than $10,000. lost.
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CNN reported that “May has been a cruel month for many cryptocurrencies,” and “The bitcoin crash has spread to other cryptocurrencies as well.”
Cryptocurrency market experts predicted that it would be difficult for the bitcoin price, which has been hit by various adverse events, to return to an upward trend for the time being.
“Bitcoin has entered sleep mode in the range of $34,000 to $40,000,” said Ulric Reike, fund manager at ARK36, a cryptocurrency hedge fund.
Peter Smith, CEO of cryptocurrency investment firm Blockchain.com, said, “The cryptocurrency market is very volatile and it can easily crush you. It is easy to become a cryptocurrency investor, but very difficult to become a (buy and sell) trader.” said
However, it remains to be seen whether investors who have sold bitcoins this month will “leave forever” from the bitcoin market, CNN reported.
This is because long-term Bitcoin holders have experienced several spikes in price in the past.
CNN reported that Bitcoin was only $2 in October 2011 and that “someone who has endured turbulent times laughs last.”
Philip Gradwell, chief economist at cryptocurrency research firm Chainalysis, said that even if Bitcoin plummets once more, investors will jump in again with $30,000 serving as support.
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