Bitcoin investors prepare for the first red monthly close in 2023

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The world’s largest cryptocurrency, Bitcoin (BTC), continues to face selling pressure and has fallen another 1.68% in the past 24 hours. At press time, Bitcoin (BTC) is trading at $27,268 with a market capitalization of $529 billion.

It turns out that Bitcoin (BTC) is looking at the first monthly drop of the year 2023. So far this May, Bitcoin (BTC) is down 6.5%, however, it continues to trade at 68% gains per year. -nowadays.

With a high of $31,000, Bitcoin has at one point seen year-to-date gains of up to 84%. However, selling pressure this month limited gains to 67%. Although bitcoin investors showed confidence amid this year’s banking crisis in March, it was momentary. Speaking to Bloomberg, John Wu, President of Ava Labs Inc. said:

“What you really need to do to get another wave of buying Bitcoin and crypto assets is show real utility and development to get these crypto-curious people into the crypto ecosystem.”

Bitcoin (BTC) network activity

Along with a strong upward movement in the price of Bitcoin (BTC), activity on the Bitcoin network has increased significantly. This involves meme coins as well as non-fungible tokens (NFTs) in the form of Bitcoin ordinals.

Bitcoin ordinals with the BRC20 standard and NFTs have grown in popularity, leading to increased BTC transaction fees as well as network congestion. Over the past four weeks, assets like stocks, bonds and gold have performed much better. Glassnode on-chain data provider reports:

At the peak of the BRC-20 frenzy, #Bitcoin miners were earning $17.8M in transaction fees, with just 2 trading days during the 2018 peak seeing higher fee revenue. Currently, miners are earning $1.7 million in royalty income, down -$16.1 million from the recent peak.

However, this is still considerably high compared to historic priority, with only 310/4674 (6.7%) trading days seeing higher fees.

Courtesy of Glassnode

Earlier this week, Bitcoin surged above $28,000 following the announcement of the US debt ceiling increase. However, it remained short-lived and it looks like Bitcoin is once again following the changes in the US stock market.

If the selling pressure continues, we could see the price of BTC drop further to $23,000.

Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrency. He is continually in a learning process and motivates himself by sharing his acquired knowledge. In his spare time, he reads thrillers and occasionally explores his cooking skills.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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