Investors are releasing crypto assets this May. This caused the price of bitcoin to experience its worst price decline in nearly 10 years on a monthly basis.
Reporting from CNN, Monday (31/5/2021), bitcoin prices fell 8% on Friday trading (28/5). In monthly accumulation this May, bitcoin has dropped around 36% and is the worst since September 2011.
After touching a price of $64,000 and setting an all-time high in April. In a row, various bad news eroded the price of bitcoin until the end of May. On Sunday trading (30/5), bitcoin price slumped 4.23% to US $ 33,717.9.
Negative Sentiment Attacking Bitcoin
Initially, Tesla CEO Elon Musk, via his Twitter account, stated that he no longer accepted buying and selling Tesla cars with bitcoin. The reason is because he is worried that mining crypto will have a negative impact on the environment.
Even though Musk started to soften up after meeting with the founder of MycroStrategy Muchael Saylor, bad news also came from China and the government of the United States (US). It is known, the Xi Jinping government prohibits financial institutions in his country from serving cryptocurrency transactions.
In addition, the administration of US President Joe Biden also announced a tightening of crypto asset transaction reporting. The US Treasury said it would impose heavy taxes on bitcoin transactions.
May 2021 has been a tough month for various crypto investors. Not only bitcoin, other assets such as binance coin, XRP, and polkadot also experienced a sharp decline this month.
Meanwhile, ethereum, the second largest coin after bitcoin, is the backbone of crypto assets and has only experienced a correction of 6%. Other so-called stable coins such as tether and USD coin proved not to disappoint with relatively flat performance this past May.
“It’s easy to become a crypto investor, but very difficult as a crypto trader. The volatility is very high and can destroy very easily,” said Blockchain.com CEO Peter Smith.