Bitcoin prices experienced a tumultuous May, with dramatic gyrations and a loss of over half their value in only a few weeks.
According to statistics provided by asset management Blockforce Capital, the digital currency’s annualized 30-day volatility hit 116.62 percent on May 24, the highest since April 10, 2020.
According to CoinDesk statistics, this metric rose to its highest level in more than 13 months immediately after bitcoin attempted two distinct bids to break above the $30,000 barrier.
Additional CoinDesk data shows that the digital asset plummeted to around $30,000 on May 19, recovered to about $42,000 a few days later, and then sank again, this time to around $31,200.
Bitcoin had a brief period of strength earlier this month, surpassing $60,000 on May 8 and trading in the vicinity for a few days.
However, the world’s most popular digital currency had some unavoidable volatility, breaking over the $50,000 and $40,000 levels before attempting to break over the $30,000 barrier.
It had dropped more than 47 percent from its May high of more than $59,500 by the time it reached its intra-month low of around $30,200.
While bitcoin did endure some significant price drops last month, which contributed to the digital asset’s volatility, these events occurred after the cryptocurrency had made some extremely amazing increases.
In April, the digital asset hit a new all-time high of about $65,000, more than tripling the previous high of about $20,000 recorded during the 2017-2018 bull run.
Furthermore, bitcoin reached this new high after plunging to a low near $3,000 in late 2018, languishing during the so-called crypto winter, when digital asset prices plummeted and industry ventures struggled to get funds.
It’s anyone’s idea where the digital currency will go next, but many market experts have pointed out that current bull run is different from the last one, fueled by a distinct set of factors.
Whereas popular interest and particularly high emotion were credited with driving bitcoin’s price rises in 2017 and early 2018, institutional investors have been credited with driving the digital currency’s upward trajectory throughout the current bull market.