Crypto

Bitcoin is immune to the proverb “sell in May”, if history is to be believed | Cryptocurrency

It’s that time of year again when investors ask, “Should I sell in May and leave.” A well-known traditional market adage may not apply to Bitcoin (BTC), depending on the seasonality analysis.

  • Bitcoin posted gains in May for seven of the past 11 years, according to the TradingView bitcoin index, which has been recording prices since July 2010.

  • May has historically been the fourth best month for cryptocurrencies with an 11-year average gain of 289%.

  • “In terms of seasonality, May is considered a relative success for BTC. Over the past 11 years, Bitcoin has finished the month up seven times and down four times,” FxPro Senior Market Analyst Alex Kuptsikevich wrote in an email.

  • “The average growth was 27% and the average decline was 16%. Under these scenarios, the estimated average range for BTC at the end of May is between $32,000 and $48,000,” Kuptsikevich added.

  • Past performance is no guarantee of future performance, especially since the composition of the bitcoin market has changed significantly since 2020 and institutions and macro traders have more say in price determination.

  • These organizations view bitcoin as a risky asset and could liquidate their holdings if the bears continue to dominate Wall Street.

  • The chart below shows that the second quarter of the second year of the US presidential cycle is bearish for the S&P 500, Wall Street’s benchmark stock index.

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