At the time of writing, Bitcoin was trading at $36,772.
Increasing concerns about the environmental impact of cryptocurrency mining and China’s recent regulatory announcements could be attributed as likely reasons why Bitcoin and Altcoins prices had failed to make further advances. The recent ban on Bitcoin mining in Iran took its toll as Iranian President Hassan Rouhani announced in a television address on Wednesday that an immediate ban on all Bitcoin mining should take effect until September.
Other factors such as increased volatility and whale selling may have contributed in a way to Bitcoin’s sell-off. Bybt.com indicated in a recent report that Bitcoin’s 30-day volatility had reached yearly peaks. Philip Gradwell, chief economist at Chainalysis noted that whales sold in may before the price crash. This he indicated from the chart of whale movements for 2021. Stating:
”Bitcoin investor whales bought in Jan, sold in Feb & March, bought again in April, then sold in May until the price crash, adding 191k Bitcoin overall in 2021 so far”.
Generally, analysts expect Bitcoin to see sideways trading in the near term while believing that the recent drawdown will be temporary as investors buy the dip.
Image Credit: @philip_gradwell/Chainalysis, Shutterstock