Bitcoin Cash Market Cap Crashed More Than $1.5 Billion in May 

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Bit­coin Cash (BCH) was one of the hard­est-hit dig­i­tal assets in the mar­ket crash of May and this led to a plunge in its mar­ket value. 

Bit­coin Cash remains a top 30 dig­i­tal asset by mar­ket cap­i­tal­iza­tion in June 2022. BCH closed the fifth month of the year with a mar­ket val­ue of approx­i­mate­ly $3.89 bil­lion, accord­ing to Be[In] Cryp­to Research. 

Whilst this fig­ure seems high due to the plum­met in the val­ue of oth­er cryp­tocur­ren­cies, this num­ber was a 28% decline from its mar­ket cap on the first day of the month. On May 1, Bit­coin Cash saw an impres­sive trad­ing vol­ume of $4.14 bil­lion which cor­re­spond­ed to a mar­ket cap­i­tal­iza­tion of around $5.42 billion.

Source: Bit­coin Cash (BCH) His­tor­i­cal Data by CoinMarketCap

Why the crashing market capitalization? 

A huge sell-off by whales which was deep­ened in the last week of the month played a sig­nif­i­cant role in the dwin­dling mar­ket cap­i­tal­iza­tion of Bit­coin Cash. 

Some of the fac­tors attrib­uted to the down­turn of the mar­ket were the con­sis­tent hike in inter­est rates to help curb infla­tion, the fall­out from Russia’s unpro­voked inva­sion of Ukraine, and the lack of risk appetite for dig­i­tal assets by investors.

On May 28, the num­ber of large trans­ac­tions involv­ing BCH reached a peak of 154,840 at a price of $176.61. 

Source: BCH Num­ber of Large Trans­ac­tion Chart by Into the Block

This cor­re­spond­ed with a large trans­ac­tion vol­ume of 70.23 tril­lion BCH.

 Source: Bit­coin Cash Total Vol­ume in BSC Chart by Into the Block

In dol­lar terms, the large trans­ac­tion vol­ume was around $12.40 trillion.

Source: Bit­coin Cash Total Vol­ume in USD Chart by Into the Block

On May 28, BCH opened at $176.14, reached an intra­day high of $179.72, test­ed an intra­day low of $173.69, and closed the day with a trad­ing price of $179.02. 

Mar­ket cap­i­tal­iza­tion was $3.42 bil­lion and this was a 39% decrease from the open­ing day’s mar­ket val­ue. Although BCH made sev­er­al recov­ery attempts to regain its open­ing day price, the cryp­to trad­ing asset end­ed the month with a rel­a­tive­ly low­er value. 

BCH price reaction 

BCH opened on May 1, at $278.59, reached a month­ly high of $302.24 on May 5, test­ed a month­ly low of $160.07 on May 12, and closed the month at a trad­ing price of $203.66. 

Over­all, this equates to a 26% dip in the open­ing and clos­ing price of BCH in May.

Source: BCH/USD Chart by TradingView

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