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.
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.
This corresponded with a large transaction volume of 70.23 trillion BCH.
In dollar terms, the large transaction volume was around $12.40 trillion.
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.
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