Bitcoin ended one of the worst months in history, losing 35.5% in May. This is the third percentage decline in price in history. Only November 2018 (-37%) and September 2011 (-40%) were the worst.
Ethereum lost 6% at the end of the month, Binance Coin – 45%, XRP – 37%, Dogecoin – 2%. The only cryptocurrency in the top ten to show growth was Cardano (+ 23%).
Several factors contributed to the decline in the crypto market: Elon Musk’s statement about the termination of Tesla sales for bitcoins, the aggressive rhetoric of China against mining and cryptocurrencies, the intention of the United States to introduce taxation of bitcoin transactions. In addition, the US Federal Reserve announced the acceleration of the project to create a digital dollar.
According to analysts at Glassnode, the decline was driven by panic selling by newly joined investors who bought the coins in a bullish phase in the first quarter.
Long-term and large holders, on the contrary, were building up their positions. Thus, the volume of coins in clusters of addresses containing from 1000 BTC increased by more than 25,000 BTC to 4.149 million, writes ttrcoin.
Analysts at Chainalysis draw attention to the surge in activity last week by large investors or so-called “crypto-whales”. They purchased 77,000 BTC in a week.
The largest surge in investor buying activity was observed on May 23, when Bitcoin fell below $ 30,000 in the short term. At the same time, the largest losses were incurred by those players who recently entered the market. 1.2 million BTC were sold at a loss of 5% to 25%.
The market has entered a protracted phase of consolidation, and the range of $ 33,000 – $ 40,000 may remain until the end of the summer, some experts are sure. Others believe that Bitcoin will return to the $ 50,000 mark by early autumn, and may reach $ 100,000 by the end of the year.
Bloomberg strategist Mike McGlone and Funstrat analyst Tom Lee predict that bitcoin will reach $ 100,000 by the end of this year.
Max Kaiser, TV presenter and founder of Heisenberg Capital, expects BTC to grow 500% in the second half of 2021 to reach $ 220,000.
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