Early on Wednesday, selling pressure on cryptocurrencies caused the price of Bitcoin (BTC) to temporarily drop under the $27K threshold. The leading cryptocurrency dropped to a low of $26,978 before bouncing back somewhat to trade at this time.
BTC was trading at $27,110 at the time of writing, down 3.09% in the previous day. After Bitcoin momentarily regained the $28,000 milestone during the long holiday weekend, the price fell.
At the time of publication, the bulk of cryptocurrencies were trading lower as it appeared that the cryptocurrency bounce was waning. Up to 3% of Ethereum, Solana, and Cardano’s value was lost.
With the current price decline, November will likely be Bitcoin’s worst month since the FTX exchange failed in November of last year. Additionally, the top cryptocurrency asset is on course to have its first down month since 2023. Today, Bitcoin is down 7.3% for the month of May.
Between January 1 and mid-April, the value of the largest cryptocurrency rose by 84%, briefly hitting $31,000, but the surge has subsequently decreased to 64%. Interest in cryptocurrencies has been subdued by a lack of liquidity and a constrictive monetary policy.
Most recently, cryptocurrency prices dropped as investors weighed the effects of the U.S. debt-limit accord, which Congress is hurrying to pass before June 5, the day by which the U.S. may default. If the merger is authorised, a wave of bill sales might occur, which could reduce market liquidity.
Traders also took into account the remarks of top Fed officials, such as Loretta Mester, president of the Federal Reserve Bank of Cleveland, who said that there was no compelling reason to cease the tightening of liquidity.
