Bitcoin And Peers Off Lows After “Worst Month Ever” For Largest Cryptoasset

Bitcoin and peers have climbed off lows after a week of prolonged selling which concluded the worst month on record for the leading crytpoasset.

Bitcoin (BITCOMP), the largest cryptoasset by market cap, dropped by 38% in May, having been trading above $58,000 at the start of last month.

gold-colored Bitcoin


According to reports, this means May was its worst calendar month on record, eclipsing the 35% drop seen in December 2013.

However, both bitcoin and ethereum have rallied in the last 24 hours, with bitcoin now at $36,705 – having been under $35,000 at one point during the weekend – and ethereum up around 15% in the last 24 hours to trade at $2,623 currently.

While short-term moves have seen volatility spike, the sell-off has also created many opportunities for new investors to get involved in the asset class for the long-term, with many buyers waiting on the sidelines and now deploying capital.

China turns to energy data in latest cryptoasset crackdown

Energy regulators in China's Sichuan province are expected to meet with local power companies in the coming weeks to gather information on cryptocurrency mining, putting more downward pressure on bitcoin in particular.

According to reports, the meetings are taking place as part of a wider crackdown on mining operations which has already rattled through the cryptoasset market. Cryptomining is a big business in China, accounting for over half of global cryptocurrency supply.

However, it is also using increasing amounts of energy, with the annual energy consumption of China's bitcoin industry expected to peak in 2024 at about 297 terawatt-hours, exceeding the total power consumption level of Italy and Saudi Arabia in 2016, according to a study recently published in scientific journal Nature Communications.

It comes after China's central government vowed last week to crack down on bitcoin mining and trading, while this week Inner Mongolia, also a major mining centre, proposed measures to root out the business.

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