Bitcoin heads for its first losing month of the year

The cost of bitcoin is declining on Wednesday by about 3%, reaching the level of $26,885 at the moment. Moreover, by the end of May, the cryptocurrency may be in the red, which will be the first monthly decline this year.

Since the beginning of the month, according to the Binance exchange, bitcoin has fallen in value by about 8%. The last time the digital currency showed a decline at the end of the month was in December last year.

Experts note that the cryptocurrency is becoming less attractive to investors in comparison with the shares of technology companies, especially against the background of the development of artificial intelligence (AI) and ChatGPT technologies.

If we trace the dynamics of the movement of bitcoin in 2023, it will be seen that the value of the largest cryptocurrency increased by 84% in the period from January 1 to mid-April, reaching the level of $ 31 thousand. After that, the crypto market was covered by a "bearish" trend. 

To date, several factors have a major impact on the bitcoin exchange rate. Basically, this is the lack of liquidity and the restrictive monetary policy of the US Federal Reserve, which constrains interest in cryptocurrencies. Additional pressure is exerted by the situation with the US national debt: investors are closely following the decision of Congress, which must be taken before June 5 – the day when the US may default.