Bitcoin has experienced 14 down days in May alone, according to Coin Metrics. So far this year, there have been 39 days with daily swings of 5% or more in either direction, based on bitcoin’s closing prices. There were 42 such days in all of 2020.
Strategists said heightened regulatory pressure as well as its technical picture are pointing to more wild trading ahead.
“The drubbing that cryptocurrencies have received over the past two weeks is just a taste of things to come,” said Peter Berezin, chief global strategist at BCA Research, in a note.
On Monday, the technology sector and shares benefiting the most from the economic reopening led the advance in the stock market. The Dow Jones Industrial Average rose about 186 points. The S&P 500 gained 1%, while the Nasdaq Composite popped 1.4% as Alphabet, Facebook and Microsoft all jumped more than 2%.
