• During the mid-May, bitcoin hit its lowest levels since March.
• Market makers such as Jane Street and Jump Crypto announced their withdrawal from crypto trading due to regulatory uncertainty.
• Coinbase was issued a Wells notice implying legal action from the Securities and Exchange Commission (SEC).

Why Was May a Rough Month for Bitcoin?

Bitcoin experienced a sharp dip during the midway point of May, hitting its lowest levels since March. Analysts are trying hard to figure out why despite banks failing left and right, and the Federal Reserve slowing down rate hikes.

Drop In Market Depth

Clara Medalie – director of research at Kaiko – believes that the dip in bitcoin’s price had more to do with a “notable drop in market depth” for the world’s number one digital currency. This could be attributed to two crypto market makers, Jane Street and Jump Crypto, both announcing their withdrawal from certain regions due to regulatory uncertainties.

Coinbase Issues Wells Notice

The lack of clear regulation has caused more issues in both the U.S. and abroad, particularly in Coinbase receiving a Wells notice from the SEC suggesting it would face financial charges soon. Coinbase executives took issue with this as they had met with representatives of the SEC multiple times over nine years to ensure compliance.

Volatility Expected

Given current liquidity levels as well as recent news regarding market makers winding down their crypto exposure, volatility is expected within Bitcoin markets. While it is unclear what catalyzed this sharp drop in prices, analysts are still working hard to determine what happened during May that put Bitcoin in this position.


May was an eventful month for Bitcoin with highs and lows seen throughout that ultimately resulted in some of its lowest prices since March.. The cause behind this drop is still uncertain however analysts believe it may have been due to market depth dropping or large market makers withdrawing from crypto trading due to regulatory uncertainties such as Coinbase’s Wells notice by the SEC .

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