Bitcoin closes out May in the red and risks further drop over summer

After two months of steady rises and a renewed hope that we could put an end to that nasty ‘crypto winter’, the month of May came with a negative surprise in the form of a very slight decline. As a result, Bitcoin runs the risk that a further move down to $70k (and even below) is a possibility in June.

Summer slump

Bitcoin threatens to get bogged down in the summer months (referred to by market traders as the ‘summer slump’) without clear direction now that larger investors are heading off on vacation. Support for the largest digital currency can be found at $72,000 and $70,000.

Should a geopolitical event (a ground war by the United States in Iran for example, or an invasion of Taiwan by China) shake up markets, it is possible that Bitcoin might test the February low ($60,000) again during the summer months.

If the crypto winter of 2026 is comparable to the disastrous year 2022, we are normally on the verge of a drop of about 37% in June, and we would not reach the low (which in that case would be around $40,000) until the end of October 2026. So let us just hope that the small drop in May was simply an ‘accident de parcours’ and that we can climb back up to $80,000 from this point on.

Much will depend on geopolitics, inflation, and the Federal Reserve’s interest rate plans.