With the appreciation of Bitcoin and altcoin values, is it advisable to divest in May and disengage?
With the appreciation of Bitcoin and altcoin values, is it advisable to divest in May and disengage?
Bitcoin and cryptocurrency prices have sustained their comeback and are poised for their most favorable weekly closing since January.
The Bitcoin price has risen for three straight weeks and is at 28% above the lowest point of this month.
Numerous cryptocurrencies have surged, with the top weekly winners being Authentic Donald (TRUMP) and Sui. Sui -0.56% Dogwifhat dogwifhat wif -5.37% dogwifhat, Fartcoin Fartcoin: -3.95%; Stacks (STX): 3.55%. Each of these tokens have surged by more than 50% in the last week.
Other high-risk investments have also recovered. The S&P 500, Nasdaq 100, and Dow Jones indexes have all increased by over 10% from their monthly lows.
Equities and cryptocurrency valuations have surged as Donald Trump indicated his willingness to finalize a trade agreement. He also dismissed the possibility of terminating Jerome Powell, the Federal Reserve Chair, who has consistently said that interest rates would remain unchanged until inflation approaches the 2% target level.
Bitcoin has emerged as a refuge amid increasing hazards. Although its performance was inferior to that of gold, it nonetheless surpassed American stocks.
Can I sell Bitcoin and other cryptocurrencies in May and then leave?
“Selling in May and walk out” is a well-known adage in financial markets. The idea posits that equities often fail in May along with summertime due to investors traveling and being absent from the market.
Seasonal data reveals that Bitcoin’s typical return in May is 7.95%, and this is inferior than the double-digit rise seen in the preceding three months. The subsequent and third quarters have typically been the least favorable times in Bitcoin.
Ki Young Ju, the creator of CryptoQuant, said that Bitcoin had not yet had a breakout. Conversely, it remains inside a broad range and can fall back to a decline until it surpasses $100,000.
