Bitcoin logs worst monthly fall in nearly three years in May: What’s next?

NEW DELHI: With a drop of 36% in May, Bitcoin has posted its worst fall since November 2018 as lofty valuations, concerns over its environmental impact and a regulatory crackdown on cryptocurrencies in China took a toll. Moreover, Bitcoin’s fall last month is the second-biggest since May 2013, as per data available with cryptocurrency tracker CoinGecko.

The bearish factors for bitcoin during the month included higher-than-expected inflation data in the US, Tesla chief Elon Musk announcement that the company will no longer accept bitcoin payment, criticism surrounding Tether’s reserves, news that Binance is under investigation by the US Department of Justice and China reiterating its ban on financial institutions from participating in crypto.