Bitcoin ends the good run with which the year began, the best since 2021. A sharp drop of 15% in less than a month leaves it touching $27,000 and investors wait to see if it is a correction or a change trending.
The crypto winter was over. The hard descents of last year were over.Bitcoin was in the biggest bullish rally since 2021. This month the doubts have returned, again. A drop of 10% last month and 5% in the last five days to $27,000 have set off alarm bells.
The price fluctuation is common, also in bullish periods. Those who have recovered or generated income on BTC’s hot streak in 2023, could be taking advantage of the correction to profitand this drop could be a necessary break for the price to continue rising.
However, the price of BTC is already behind gold, which is close to its all-time high. A competitor that is a rival in one of the greatest attractions that cryptocurrency represents: the refuge of value. Securities regulations and commissions are putting huge pressure on major exchanges, and miners are selling.
In addition, as we anticipated last month, on the 26th of may be a date key in the retracement of the price of BTC if there is a new sale by the US government, like the one on March 14, which could have an even greater negative impact given the circumstances of the current price evolution.
Binance Blocks BTC Withdrawals
Binance has suffered Crashes Pausing BTC Withdrawals by “congestion” of the network. On May 8, the exchange blocked Bitcoin withdrawals twice in less than 12 hours. The cryptocurrency exchange issued a statement through its social networks explaining that this measure was necessary due to a significant accumulation of pending withdrawals.
“There is a large volume of Binance withdrawal transactions still pending, as our set fees did not anticipate the recent increase in BTC network gas fees.”, they explained.
gas rates, cost of cryptocurrency transactions have reached all-time highs the past days. This may be an extra benefit for the miners, since it is the amount they charge, but it can also be a great inconvenience for investors trying to sell or buy the cryptocurrency and, therefore, affect the price.