In May, Bitcoin (BTC) posted its first monthly loss since December 2022 with a negative 6.98%. However, this consolidation was not obviously driven by a change in fundamentals or the broader macroeconomic environment. The crypto market was looking for direction and liquidity in this phase before the United States Federal Reserve announced a pause on the rate hiking cycle in June.
Many indicators, such as the futures market and VC investment, point to an optimistic underlying sentiment. But while traditional markets and tech stocks were able to continue their rally in May, actual price action in the crypto market remained suppressed and took some time to spring from its woodworks.
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Blue chip crypto stocks also saw a strong month posting a month-over-month return of 7%. Mining operations and other established ventures continued to benefit from the previous phase of the market’s recovery back in March. The most notable gains were again made by mining stocks. After the explosion of TeraWulf’s evaluation, Bit Digital followed suit, and its stock rose by an astonishing 77% after mining operations in Iceland were announced.
Many overleveraged mining companies had been battered throughout the bear market due to tightening credit conditions and decreasing BTC prices, which now gives competitors a chance to rapidly raise evaluations. As most now expect Bitcoin to already have
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