This Analyst Says You Should Sell Your BTC in May and Go Away

As a researcher with a background in cryptocurrencies and market analysis, I find Nic Puckrin’s perspective on selling bitcoins in May being more profitable than September intriguing. The data he presents from Coin Bureau and K33 suggest that this strategy, often referred to as “Sell in May, Go Away,” has shown significant returns in the crypto sector over the past five years.

According to Nic Puckrin, the co-founder and CEO of crypto information portal Coin Bureau, selling Bitcoins (BTC) in May could yield greater profits compared to disposing of the assets in September.

Based on his social media post, disposing of cryptocurrencies in May resulted in a cumulative return that was more than 1000% higher than the returns from selling at any other time during the year, including September.

Sell in May and Go Away

Puckrin pointed out that the expression “Sell in May, Go Away” is a well-known concept in finance, indicating the influence of seasonal trends. This timeworn advice has been around for centuries and proposes that the most profitable six months for stocks transpire from November to April. Consequently, investors are advised to sell their holdings in May and re-enter the market in October.

As an analyst, I’ve noticed an intriguing pattern in the crypto sector over the past five years. Specifically, purchasing Bitcoin in October and selling it in April has yielded impressive returns of approximately 1,449%, while buying in May and selling in September resulted in a negative return of around -29%. This observation underscores the significance of strategic timing when investing in this dynamic market.

According to a report from cryptocurrency research firm K33, which Puckrin referenced, the CEO of Coin Bureau is convinced that his assertions are validated. He emphasizes that other studies have also demonstrated similar findings related to the same investment approach. Consequently, the belief of the Coin Bureau CEO is that crypto investors could have earned greater returns if they had sold their digital assets last month. This is particularly noteworthy given Bitcoin’s surge to a record high of $73,700 in mid-March and subsequent trading around $70,000 for the rest of the month.

Market Sentiment is Cooling

Based on current on-chain signals and macroeconomic circumstances, it seems that investors might have missed the opportunity to sell their assets, given that May has begun unfavorably and market mood has turned sour.

According to the Bitcoin Fear and Greed Index, the sentiment among retail investors has weakened as the index currently sits in the neutral zone. As per Puckrin’s assessment, Bitcoin-related search queries have decreased, while there seems to be an overflow of pessimistic content on platform X.

As a researcher studying the crypto investment landscape, I’ve observed a noticeable shift in institutional sentiment towards cryptocurrencies. In the United States, for instance, the Bitcoin spot ETF market has experienced consistent outflows over the past five trading days. This trend is also evident in the newly-launched ETFs in Hong Kong, which have seen significantly lower inflows than initially anticipated by analysts.

Moreover, Puckrin revealed that the ongoing funding rates have seen a significant decrease, while the number of open interest contracts in Chicago Mercantile Exchange futures held by non-ETF funds has dipped to their lowest point since October 2023.

At present, Bitcoin has dropped over 22% from its peak and was being traded at approximately $57,100.

2024-05-01 17:30

This Analyst Says You Should Sell Your BTC in May and Go Away

Sell in May and Go Away

Market Sentiment is Cooling

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