The cryptocurrency market’s rally this year is slowing down, as bitcoin recorded its first monthly loss since November. According to Messari data, Bitcoin and Ethereum shed 6% and 1% in May respectively, despite both of them remaining well over 50% year to date.

Galaxy Digital CEO Mike Novogratz commented on the recent sideways trading of major tokens, saying that the “dog days of summer” have come early for the trillion-dollar crypto industry. “Crypto’s lackadaisical right now”, he told CNBC on Thursday. “There’s a constant bid from retail. We’re seeing it through all the platforms”, he added, referring to the recent integration of the Chinese social media giant WeChat’s digital yuan. “There’s not a lot of institutional excitement right now.”

Novogratz explained the situation further, saying: “The dog days of summer started early in crypto. That doesn’t make me thrilled. That’s just the reality.”

Risk assets are typically sensitive to tighter monetary policy, and the Federal Reserve and the European Central Bank are expected to continue their hawkishness. The Fed has delivered 10 consecutive interest rate hikes since March of 2022, in an attempt to tame high inflation, and the ECB has also been tightening and recently signalled that it’s not done hiking either.

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