Bitcoin’s $100K Target May be Short-Lived as BTC Traders Brace for ‘Sell in May’
The post Bitcoin’s $100K Target May be Short-Lived as BTC Traders Brace for ‘Sell in May’ appeared on BitcoinEthereumNews.com. A bitcoin (BTC) breakout earlier this week has traders eyeing the $100,000 level in the coming days, a euphoric trade that could be short-lived as May’s seasonality approaches. “Historically, the next couple of months have been weak for financial markets, with many investors abiding by the Sell in May and Walk Away adage,” Jeff Mei, COO at BTSE, told CoinDesk in a Telegram message. “That being said, markets have significantly underperformed over the last few months, but this year could buck the trend, with Bitcoin hitting $97K and other growth stocks coming back over the last few weeks. This past week’s weak GDP numbers coming out of the US indicate some risk, as another report of negative GDP growth next quarter would indicate a recession, but rate cuts could lead to a rebound as well,” Mei added. The adage “Sell in May and go away” is a long-standing seasonal saying in traditional financial markets. It suggests that investors should sell their holdings at the beginning of May and return to the market around November, based on the belief that equity markets underperform during the summer due to lower trading volumes, reduced institutional activity, and historical returns data. The phrase dates back to the early days of London Stock Exchange and was originally “Sell in May and go away, come back on St. Leger’s Day,” referencing a mid-September horse race. What data shows Historically, U.S. stock markets have shown weaker performance from May through October than from November through April, leading to the strategy becoming a seasonal rule-of-thumb for some investors. Bitcoin also shows recurring seasonal patterns, often influenced by macro cycles, institutional flows, and retail sentiment. CoinGlass data show the asset’s May performance has been negative or muted recently. In 2021, BTC dropped 35%, one of its worst months that…
The post Bitcoin’s $100K Target May be Short-Lived as BTC Traders Brace for ‘Sell in May’ appeared on BitcoinEthereumNews.com.
A bitcoin (BTC) breakout earlier this week has traders eyeing the $100,000 level in the coming days, a euphoric trade that could be short-lived as May’s seasonality approaches. “Historically, the next couple of months have been weak for financial markets, with many investors abiding by the Sell in May and Walk Away adage,” Jeff Mei, COO at BTSE, told CoinDesk in a Telegram message. “That being said, markets have significantly underperformed over the last few months, but this year could buck the trend, with Bitcoin hitting $97K and other growth stocks coming back over the last few weeks. This past week’s weak GDP numbers coming out of the US indicate some risk, as another report of negative GDP growth next quarter would indicate a recession, but rate cuts could lead to a rebound as well,” Mei added. The adage “Sell in May and go away” is a long-standing seasonal saying in traditional financial markets. It suggests that investors should sell their holdings at the beginning of May and return to the market around November, based on the belief that equity markets underperform during the summer due to lower trading volumes, reduced institutional activity, and historical returns data. The phrase dates back to the early days of London Stock Exchange and was originally “Sell in May and go away, come back on St. Leger’s Day,” referencing a mid-September horse race. What data shows Historically, U.S. stock markets have shown weaker performance from May through October than from November through April, leading to the strategy becoming a seasonal rule-of-thumb for some investors. Bitcoin also shows recurring seasonal patterns, often influenced by macro cycles, institutional flows, and retail sentiment. CoinGlass data show the asset’s May performance has been negative or muted recently. In 2021, BTC dropped 35%, one of its worst months that…
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