Categories: WORLD

Bitcoin headed for second-largest monthly drop on record

Bitcoin was trading near $36,426 at 14:28 GMT on Monday, with losses for May totaling almost 37.5%. It is just short of the record 40% slide in September 2011, according to Bitstamp data. 

In a major selloff, the cryptocurrency nosedived to around $31,227 on May 24 – over a 50% decline from its mid-April peak.

Fears of China’s crackdown on cryptocurrencies, along with the coming regulations in the United States, and controversial statements from Tesla CEO Elon Musk, have all been putting pressure on the crypto market.

Musk’s unexpected announcement this month that Tesla was suspending purchases of its vehicles using bitcoin, due to environmental concerns, crushed hopes for widespread corporate adoption raised by the carmaker’s decision to adopt bitcoin in February.

According to blockchain analytics firm Glassnode, the price crash was driven mainly by panic selling by new investors who bought coins during the first-quarter bull run. Analysts say that a sustained accumulation by large investors might be needed to restore battered market confidence.

For more stories on economy & finance visit RT’s business section

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