Bitcoin was nearing its largest monthly decline ever as May ended.
Bitcoin, the number one cryptocurrency by capitalization, ended under 36% for the month of May at $36,509. A finish under $34,885 would have been the cryptocurrency’s worst monthly decline ever.
Bitcoin prices were under pressure in the month as investors worried about the crypto-market facing more scrutiny from officials in the U.S. and China.
Federal Reserve Chairman Jerome Powell proposed the potential for the central bank to create its own digital currency and was seeking ways to increase regulation. The IRS said cryptocurrency moves of over $10,000 should be reported to the agency.
Meanwhile, Chinese officials took steps to restrict bitcoin and other cryptos. They announced their program to limit bitcoin mining and trading and the nation’s banking association warned banks to not transact in cryptocurrencies. China is attempting to create its own digital currency, the digital yuan.
Talk of more regulation comes as Tesla Inc. reversed its program of accepting bitcoin as payment for its products, citing environmental worries.
Bitcoin reached a record high in April of over $63,500 per coin, fueled by the move by some U.S. companies to start investing in the cryptocurrency to diversify their portfolios.
Business software provider MicroStrategy Inc. put over $2.2 billion into bitcoin while Tesla has put in around $1.5 billion.
Author: Steven Sinclaire