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FOX Business Ashley Webster breaks down the market opening on Tuesday.
Bitcoin was flirting with its biggest monthly drop on record at the end of May.
Bitcoin, the largest cryptocurrency by market cap, was on track to close 36% in May at $ 36,509 per coin. A finish below $ 34,885 would cement the worst month on record for the cryptocurrency.
Bitcoin prices came under pressure in May over concerns that the cryptocurrency market might come under increased scrutiny from US and foreign regulators.
Federal Reserve Chairman Jerome Powell this month raised the possibility that the central bank could create its own digital currency and was looking for ways to tighten regulation. The Internal Revenue Service said cryptocurrency transfers over $ 10,000 should be reported.
Meanwhile, Chinese regulators have taken a number of steps this month to limit the use of bitcoin and other cryptocurrencies. They have announced plans to crack down on bitcoin mining and trading behavior, and the country’s banking association has warned its members to refrain from dealing in digital currencies. China is working on its own digital currency, the digital yuan.
Discussions of increased regulation come as Tesla Inc. this month reversed its policy of accepting bitcoin as a form of payment for its vehicles, citing concerns about the environmental impact of cryptocurrency mining.
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Bitcoin in April hit a record high of over $ 63,500 per coin, fueled by the decision of a number of US companies to start investing in cryptocurrency as a way to diversify their cash flow.
Business intelligence software provider MicroStrategy Inc. has invested more than $ 2.2 billion in bitcoin while Tesla has parked around $ 1.5 billion in cryptocurrency.
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