Historically, May has been the fourth-best month for bitcoin.Read MoreFeedzy
It’s that time of the year again when investors wonder, “should I sell in May and go away?” The famous traditional market adage may not apply to bitcoin (BTC), however, according to seasonality analysis.
Bitcoin has logged gains in May in seven years out of the past 11 years, per charting platform TradingView’s bitcoin index, which records prices from July 2010.
Historically, May has been the fourth-best month for the cryptocurrency.
“In terms of seasonality, May is considered a relative success for BTC. Over the past 11 years, bitcoin has ended the month up seven times and down four times,” Alex Kuptsikevich, senior market analyst at FxPro, said in an email.
“The average rise 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 results, more so as bitcoin’s market composition has changed significantly since 2020, with institutions and macro traders having more say in determining prices.
These entities treat bitcoin as a risk asset and could liquidate their holdings if bears continue to dominate the action on Wall Street.
The chart below shows the second quarter of the second year of the U.S. presidential cycle is bearish for S&P 500, the Wall Street’s benchmark equity index.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Wealth management clients of Wall Street banks like Goldman Sachs, Bank of America, Morgan Stanley…
The Bitcoin volume has experienced a severe crash amidst its initial price momentum, falling by…
Follow Mark on X. Well, well, well—if it isn't Jack Mallers dropping truth bombs like…
The user held BTC from when it was worth $0.06 all the way up to…
Bitcoin has experienced a whirlwind of volatility following its recent all-time high of $93,483 set…
Follow Aaron on Nostr or X. In his Take from Wednesday, Shinobi argued that the surge…