(CNN) — Investors of bitcoin They sold in May. Now it remains to be seen if they left the cryptocurrency permanently or will return.
Bitcoin prices fell 8% on Friday. The value of the cryptocurrency has plummeted about 36% in May, its worst monthly performance since September 2011. It is now trading at about $ 37,000.
A steady stream of negative news sent bitcoin into a downward spiral after hitting an all-time high in April, hovering above $ 64,000.
Tesla CEO Elon Musk took a U-turn in his stance on bitcoin, recently telling clients that the electric car giant will not accept any more bitcoins as payment currency for vehicles, due to concerns about the environmental impact of energy-demanding bitcoin mining.
Musk then softened the position and agreed – thanks to the intervention of MicroStrategy CEO Michael Saylor, a cryptocurrency evangelist – to meet with the heads of several North American-based bitcoin miners to discuss concerns related to the use of cryptocurrencies. Energy.
China also increased its strong hand against cryptocurrencies and the US Department of the Treasury unveiled new plans to tax bitcoin more. The Federal Reserve, for its part, hinted at the possibility of a digital dollar.
May was a brutal month for many cryptocurrencies
Not only did bitcoin fall, the poor results spread to others cryptocurrencies too. Binance coin, XRP, and Polkadot all posted big losses this month.
Other cryptocurrencies, especially ethereum —The second largest after bitcoin and central in many deals for the purchase of the popular non-fungible tokens (NFT) – they held out better. Ether fell only about 6%. Dogecoin, the cryptocurrency that was born as a meme and that Musk has repeatedly tweeted about, had a slight decline in May.
The calls stablecoins (stablecoins) such as Tether and USD Coin, which are pegged to government-backed coins, lived up to their name and were unchanged for the month.
Bitcoin is notoriously volatile and prices are still up more than 25% this year despite the May slide. So long-term fans, who like to call themselves HODLers, have actually been through this many other times.
“Being a cryptocurrency investor is really easy. Being a cryptocurrency trader is extremely difficult, ”said Peter Smith, CEO of Blockchain.com, a startup of research, investment and cryptocurrency loans valued at US $ 5.2 billion. “It is a market with very high volatility and it can easily pass you by.”
Bitcoin prices plummeted from about $ 20,000 in December 2017, when they were at a peak at the time, to less than $ 3,500 in early 2019. They then rallied.
And bitcoin’s drop of nearly 40% in September 2011 was part of a three-month drop that lasted from August to October of that year. Prices fell by more than 35% each month.
However, all who managed to endure that tumultuous period are now reaping success. Bitcoin prices hit a low of $ 2 in October 2011 and the cryptocurrency is now trading for close to $ 37,000.