Bitcoin was hit hard in the crypto market crash of May which caused a huge drop in the market cap of the most popular cryptocurrency.
Bitcoin remains the largest digital asset by market capitalization as of June 2022. Be. According to[In]Crypto Research, BTC closed the fifth month of the year with a market capitalization of approximately $605.8 billion.
It was down 17% from the opening day’s market price. On May 1, BTC saw an impressive trading volume of $27 billion, which corresponded to a market capitalization of approximately $732 billion.
Why is the market capitalization falling?
The widespread sell-off by investors, which gained momentum in the week of May 9 to 13, can be attributed to the declining market capitalization of bitcoin. The primary factors that led to the sell-off were economic uncertainty resulting from the Russia/Ukraine crisis, inflation and rising interest rates.
In May, the number of large transactions involving bitcoin reached a peak of 29,130 on May 12 at a price of $27,960.
This corresponded to a large transaction volume of approximately $278.47 billion.
On May 12, BTC opened at $28,936.73 and reached an intraday low of $26,350.49. The trading volume was in the region of $66.99 billion and corresponded to a market capitalization of approximately $553 billion. This was a 24% drop in BTC’s opening day market cap. As the price crashed BTC to its lowest point since 2020, late recovery attempts could not see the coin revisit the market capitalization area of its opening day in May.
btc price action
Bitcoin opened on May 1 at $37,713, reached a monthly high of $39,789, tested a monthly low of $26,350 on May 12, and closed the month at a trading price of $31,792.
Overall, this equates to a 15% drop in the opening and closing prices of BTC in May.