Connect with us

Business

Bitcoin is destined to have its worst month in a decade

Published

on

Bitcoin is destined to have its worst month in a decade.

Bitcoin has dropped about 40% so far this month, owing to a tightening crackdown in China and environmental worries.

Bitcoin dropped to US$33,464 (HK$261,019) yesterday morning before regaining control of the US$36,000 mark last night. Bitcoin, the world’s largest and most well-known cryptocurrency, is down 44% from its all-time high of US$64,895.22 on April 14. Ether, the cryptocurrency tied to the ethereum blockchain network, fell 0.65% to $2,449.42 Friday night.

Bitcoin has been less volatile in the last week, but losses have been significant this month, owing to increased regulatory constraints on the sector. It is currently trading at levels last seen in January and is worth around half of its peak value.

“Bitcoin is presently in a’slumber state,’ trading between $34,000 and $40,000,” said Ulrik Lykke, executive director at crypto hedge fund ARK36.

The Common Channel

More>> “Many traders see that pricing appears to remain range-bound for the time being, which is why they may be cautious to initiate a position with strong confidence.”

The cryptocurrency has lost more than 37% in May, which would be its worst monthly performance since September 2011.

Its decline was precipitated by China’s efforts to tighten down on cryptocurrency mining and trade, as well as Tesla’s decision to cease payments due to concerns about energy use.

An official in China’s Sichuan province warned last Thursday that energy officials will soon meet with local power providers to gather information on cryptocurrency mining, potentially leading to a crackdown in the country’s second-largest bitcoin production center.

Comments

Trending