Although cryptocurrencies started 2023 with a bang, with encouraging results for the financial market, the situation changed in May. That's because the Bitcoin, the most popular and most valuable cryptocurrency, has lost 7% in value in the last month.
According to Vinícius Bazan, specialist in cryptocurrencies, in an article published on Empiricus.com.br, the retreat of Bitcoin should be looked at with caution and without fanfare.
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“We have to be very careful in how we evaluate the movements, because sometimes they are very circumstantial and reflect what's happening just at that moment and don't necessarily show the full picture," he said. Bazan.
In addition, he reinforces what is at the beginning of the text: this is the first month that this cryptocurrency has fallen. Precisely in a year that she started off on the right foot.
Why was Bitcoin devalued?
Vinícius Bazan believes that the devaluation of Bitcoin happened due to a market correction after the highs of the first quarter of 2023. In addition, we must put into the equation the fact that this cryptocurrency did not follow the rise in shares.
“I like to see this decorrelation of Bitcoin with the nasdaq and the S&P 500, because it shows that the asset has its own fundamentals”, explains Bazan. He completes, saying that he does not consider the drop to be significant and that “for Bitcoin, this is a very natural variation”.
As published by the website Panorama Crypto, one should also put into the equation the fact that, in the last three years, the price of Bitcoin has always ended in devaluation in the month of May.
With the exception of 2020, when the cryptocurrencyclosed the month on a high, in all the months of May there was a retreat. According to the publication, if we consider the data from 2013 to 2023, the price of the asset accumulated a devaluation in May in 70% of the monthly closings.
Besides, this year's closing isn't even the worst. In 2021, for example, there was a 35% devaluation – much more than the 7% this year.
What can you expect from Bitcoin?
Also according to Panorama Crypto, the trend is that Bitcoin does not have a strong recovery and the asset remains at approximately US$ 26,000.
It is worth remembering that since 2019, still according to the publication, the cryptocurrency has not closed June in appreciation. And that, last year, the month had the worst fall of all the months of June in previous years.
Graduated in Social Communication at the Federal University of Goiás. Passionate about digital media, pop culture, technology, politics and psychoanalysis.
