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Bitcoin prices fall 7% in May, on pace for first monthly loss of 2023

Bitcoin is on track to post its first monthly loss of 2023, as the cryptocurrency hovers above $27,000. Yahoo Finance crypto reporter David Hollerith takes a look at how the cryptocurrency has traded over the last year and how other digital assets are faring so far in 2023.

Video transcript

- All right. Let's take a look at crypto. Bitcoin sliding over 7% in May. Headed for its first in negative month in just about a year here. David Hollerith-- of the year. Excuse me. David Hollerith is here with a closer look at the declines that we're seeing in that space. David.

DAVID HOLLERITH: Hey, Seana. Yeah. After four months in the green, Bitcoin is closing down about 7%. It's hit a peak in mid-April of around $31,000. And since then, it's fluctuated in this range between $30,000 and $26,000. More recently, since that peak, it's lost about $66 billion in its market cap value. And so this total rise year to date has actually still been 63%. So that's since the beginning of the year. And that has far outpaced the S&P and NASDAQ but has fallen short of those major stock indexes, with a 15% loss from a year ago today.

So excluding this past day which we've seen, the volatility for Bitcoin and other cryptocurrencies has dropped significantly in the past 30 days. And that signals a lack of selling or buying conviction amongst investors. Obviously, the hot labor data and Fed official talk has not been kind to Bitcoin either. Edward Moya, who is with OANDA, was telling us that Wall Street is appearing not to take as much interest into crypto as it has in past years. I say crypto. He said Bitcoin specifically.

And it's important to point out that this time last year, Bitcoin was at the beginning of what was a very long sell off. It was pretty rough. And we saw a lot of company failures and potentially some fraud. So even though it's a down month and things seem to be quiet, that might be interpreted as a better thing. Bitcoin and cryptocurrencies in general are still sort of trying to get past the hype from 2021 and are kind of looking for more application or utility for adoption.

So that's the month of May. In June, it's about a toss up historically in terms of what prices have done. We've seen gains in the month of June for about 5 of the 10 past years. And July is usually better. It's the third best month historically for Bitcoin and crypto assets more broadly. I also do want to point out the stablecoin Tether has been on a tear. Since around the time of regional bank turmoil, which started in March, Tether has gained about $11 billion in market cap value. Its second competitor, Circle's USD coin, has lost about $14 billion for the same period. Diane.

- All right. David, thank you so much.