Bitcoin BTC/USD suffered its first monthly loss of the year after falling below $27,000 in Thursday morning trading.
What Happened: The largest cryptocurrency by market capitalization had previously put in a strong performance.
It bounced back strongly from the turn of the year through mid-April, briefly scaling the $31,000 mark. However, the climb has since fizzled and BTC is down over 6% in May.
The dip in Bitcoin’s price came amid ebbing liquidity and restrictive monetary policy, leading to weaker investor enthusiasm for crypto.
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Why It Matters: Bitcoin’s decline in May can also be attributed to the increased activity from meme coins like and Ordinals. This activity caused a peak in congestion and transaction fees on the Bitcoin network, which has since eased.
In contrast, assets such as stocks, bonds, and gold performed better than crypto in the past four weeks. Hype over artificial intelligence was prominent, leading to a more than 10% gain in an index of AI-linked shares.
Price Action: At the time of writing, BTC was trading at $26,796, down 1.92% in the last 24 hours, according to Benzinga Pro.
Read Next: Bitcoin, Ethereum, Dogecoin Fall Amid Inflation Worries: Analyst Says If Apex Coin Was Superman Then Fed Tightening Is Its Kryptonite
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