HomeBitcoin NewsWhy was May a Rough Month for Bitcoin? Analysts Weigh In

Why was May a Rough Month for Bitcoin? Analysts Weigh In

Date:

Related stories

BTC Can Hit $100,000 Soon and $150,000 If Trump Wins, Predicts Standard Chartered

Standard Chartered, the British financial institution, claims bitcoin can...

BTC Falls Below $70,000, Triggered by Massive Selloff

As the crypto community awaited BTC to push past...
spot_imgspot_img

Bitcoin hit its lowest levels since March during the midway point of May, and analysts are trying hard to figure out why.

Bitcoin and Last Month Didn’t Go Well Together

In many ways, the arena was set for bitcoin to have an explosive month. While the currency was still miles above the position it stood at during 2022 – as we reported earlier today – the currency experienced a nasty little dip that saw it fall into the mid-$26K range, an area it hadn’t seen in a while.

Prior to this fall, banks were failing left and right, which ultimately should have paved the way for bitcoin. The currency tends to do quite well when the standard financial arena is stumbling, so what could have happened? In addition, the Fed had hinted that rate hikes were going to slow down if they didn’t come to a full halt. The situation is a baffling one, and it’s left analysts in a strange daze.

Clara Medalie – director of research at Kaiko – said the price dips exhibited by bitcoin had more to do with a “notable drop in market depth” for the world’s number one digital currency. There were also issues arising from both Jane Street and Jump Crypto, two of the biggest crypto market makers. Both announced they were going to be stepping back from crypto trading in regions like the U.S. given the unstable nature of regulation and agencies like the Securities and Exchange Commission (SEC).

Naturally, such news wouldn’t be taken well by the industry. She explained in a recent interview:

While it is yet unclear the catalyst for today’s sharp drop, the volatility is to be expected given the current state of liquidity, especially after larger market makers Jane Street and Jump Crypto revealed they were winding down their crypto exposure.

The lack of clear regulation has caused a wide scope of issues in both the U.S. and abroad. Coinbase – one of the world’s largest and most popular digital currency trading platforms – was recently issued a Wells notice from the SEC, informing it that it was likely to face financial charges in the coming future.

Executives took serious issue with the notice, claiming they had met with representatives of the SEC at least 30 times over a nine-year period to ensure the company and all its operations were compliant. Brian Armstrong – the CEO of the exchange – has stated that he believes Coinbase is going to be involved in a very lengthy battle with the agency.

So Many Issues at Once

Antoni Trenchev -co-founder of Nexo – said:

Bitcoin’s attempts to break through $30,000 have come undone amidst a triple whammy of congestion issues on the blockchain, liquidity constraints caused by the scaling back of top market makers Jane Street and Jump Crypto, and ever-circling regulators.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img