“Bitcoin” achieves the largest series of monthly gains since 2021

Bitcoin resumed its decline today, Monday, after rising for four consecutive months through April, in the longest winning streak since 2021.

The major cryptocurrency fell by 3.2%, and was traded at $28,580 at 12:28 pm in Tokyo. Smaller currencies such as Ether, Solana, and Polkadot also declined, as well as the index of the top 100 digital assets.

Since the beginning of 2023, Bitcoin has compensated 73% of its loss last year, to settle at around $30,000, while traders are waiting for more incentives.

The rally was driven by bets that the US Federal Reserve would eventually shift to a looser monetary policy, as well as arguments that the US banking crisis had eroded confidence in the fiat currency.

Impact of the First Republic Bank

First Republic Bank is the latest stop for banking troubles in the United States. Regulators worked all night to try to resolve the dilemma, while uncertainty reflected in the prevailing mood in global markets.

Adrian Berlozhny, head of cryptocurrency exchange Independent Reserve, noted that the market is very nervous waiting to see what happens to First Republic Bank, opining that Monday's Bitcoin volatility could just be related volatility. Some long positions were also liquidated as the market dropped a bit, and this trend followed.

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Bitcoin’s series of gains over a period of four months until April is the longest, since its rise for six consecutive months that extended until March 2021.

In the past decade, Bitcoin's four-month bull run predicted a 260% increase over the following year, according to data compiled by Bloomberg.

Bitcoin and the broader crypto world remain exposed to a variety of risks, such as the US crackdown on the sector and the possibility of traders scaling back their expectations that monetary policy will become looser later this year.

Currently, the Federal Reserve is expected to raise interest rates by an additional quarter of a percentage point on Wednesday to curb inflation, even as economic risks mount.