Bitcoin’s sluggishness in May continues as it stays below $27K amid inflation concerns.

In the beginning of June, crypto prices have turned slightly red. Bitcoin, the largest cryptocurrency, has recently been trading at around $26,950, down 0.5% over the past 24 hours, and this is the second consecutive day that BTC has dropped below $27,000. This trend was carried over from May, when bitcoin’s price dipped almost 4%, breaking a four-month streak of gains.

Despite this, bitcoin soared more than 60% from January, reaching about $31,000 at one point in mid-April, as crypto regained its luster as a safe-haven asset following a string of U.S. bank failures that raised concerns about traditional finance.

CoinDesk Head of Index Research Todd Groth said, “Anytime you have an asset that has significant volatility such as cryptocurrency, any real monthly move that is under a safe flat fee of 5% is relatively muted. The broad CMI was down about 2% to 3%. In the context of how much these assets can move over a historical basis, it’s really a bit of a choppy month. Now we’re looking for that next big narrative to move higher.”

Other major digital assets were mostly down, albeit not by much, although litecoin was an exception as it recently rose more than 7% with investors seemingly buoyed by the network’s halving in two months and a jump in activity in May.

The CoinDesk Market Index, a measure of crypto markets performance, recently sank 0.4%.

Meanwhile, stocks rose a day after the U.S. House of Representatives passed a bill to raise the debt limit ensuring the government could meet its financial obligations at least for the near-term and avoid a shutdown. The tech-heavy Nasdaq Composite and S&P 500, which has a hefty technology component, both rose about a percentage point. Gold inched up 0.6% to above $1,995, although it remains well below its near record high of nearly a month ago.

Leo Mizuhara, CEO of institutional crypto management platform Hashnote, wrote that crypto markets had “dodged a bullet, thanks to the resolution to the debt ceiling crisis and a growing embrace of digital assets in Asia, particularly in Hong Hong, which has been trying to create easier access for retail investors.

But he added that he is “not expecting a huge breakout for Bitcoin at the moment, and compared the current stasis in markets to 2019 when investors were recovering from an extended bear market.

“We’re basically in a builder’s market,” Mizuhara wrote. “A lot of interesting protocols and companies are being launched. Venture funding is creeping back in. So, like in 2019, we’re likely in this build-up phase that sees a lot of positive energy flowing into the space that in turn sets the foundations for the next bull cycle. Despite the difficulties facing the crypto industry in the United States, what’s happening globally makes it hard not to feel optimistic right now.”

Edited by Nelson Wang and James Rubin.

(This is already in English. If you meant to say “Translate this sentence to English”, then the sentence is already in English and does not need to be translated.)

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