May was a testing time for cryptocurrencies like Bitcoin (BTC). The flagship digital asset was already wobbling after rallying to nearly $65,000 in mid April, owing to profit-taking sentiment among traders.
Elon Musk accelerated the sell-off by reversing his company’s plans to accept Bitcoin as payment for Tesla’s electric cars.
Later in the month, the People’s Bank of China reiterated to the country’s financial institutions against the use of virtual currencies for payments. Chinese authorities are also starting to keep a close eye on crypto mining — the process by which computers mine cryptocurrencies like Bitcoin.
More blows to the cryptocurrency sector came from the U.S. tax and monetary authorities, including Federal Reserve Chairman Jerome Powell, who suggested that more regulations are needed.
All and all, the flurry of negative updates caused the cryptocurrency market to lose more than $500 billion in May. Being the benchmark digital asset, Bitcoin also suffered the brunt of aggressive downside pressure, falling 35.50% in the