Even though Q2 is typically a very fruitful quarter for bitcoin, the coin has yet to generate significant profits during the same period in 2021. Furthermore, BTC finished May with extensive declines, making it the 2nd weakest running month with a staggering thirty-five percent drop in Dollar price.
How did BTC fare in May?
It's safe to assume that the key crypto coin had a rough month in May, which just ended. The asset soared in April when it reached an all-time high of USD 65K before retracing to less than USD 60K.
May got off to a good start. Bitcoin gained several thousand bucks in the opening week or so and tested the USD 60K mark. However, the failure to cover up its losses sparked worries among users, with many arguing that if Bitcoins fail to breach it, rejection may occur.
And such a rejection came swiftly. The value of BTC/USD began to fall sharply, possibly due to Elon Musk and Tesla refusing to accept BTC payments for their EV-wares, which was exacerbated by China's additional crypto ban.
Bitcoin dropped from USD 58k to USD 50k in a matter of days, then to $40,000, and finally to USD 35k on May 19. Until now, Bitcoin has regained some ground but has yet to break through the USD 40k barrier.
Finally, bitcoin had a negative month in May. According to Bybt, the asset fell by 35.31 percent, ranking it second in dollar price changes. Only November 2018, with a 36.57 percent drop in BTC, came close.
It's worth noting that the second quarter has historically been bitcoin's best performing quarter, with average gains of around sixty percent before 2021.
What about Altcoins?
Although most alternative cryptocurrencies had a volatile and disruptive month, others, such as Ethereum, fared better. Indeed, ETH remained among the best performers until the middle of May, when it broke through the $4k barrier for the first time, reaching an all-time high of $4.4k on May 12.
On the other hand, the increased instability drove ETH down to approximately $1.7k after a few weeks. Following this 62 percent drop, ETH began to regain some ground, closing the month "within a hundred dollars of that previous monthly candle," as noted recently by famous crypto analyst Lark Davis.
