“Sell in May and leave,” the Wall Street adage is given every summer on the stock market. For Bitcoin
BTC$106,919.24
However, some analysts say this season could mark a break from tradition.
“As we reach the summer months of Europe, the sense is that it’s more likely to be a case of “buy and leave in May” than important headwinds and sales pressures,” said Paul Howard, director of Crypto Trading Firm and director of WinCent.
Positive regulatory development on US digital assets and increasing institutional purchases through both exchange trade funds and spot allocations are poised to increase BTC in the coming months, Howard said.
For example, the US trading spot Bitcoin ETF drew in a net inflow of $667 million on Monday, when BTC paused just below its January record, highlighting sustained demand. According to SosoValue, the vehicle attracted $3.3 billion in May. On top of that, Michael Saylor’s Strategy (MSTR) adds Bitcoin to finance, and companies funding it with debt and stock issues are making a fuss.
“As we approach the $4 trillion market capitalization of digital assets, we will see BTC crosses over the next few weeks,” Howard said. Currently, Crypto’s total market capitalization is approximately $3.3 trillion per TradingView data.
Historically, the summer months of crypto assets have been slower, but macro and political forces have converged in ways that could disrupt typical seasonal lulls, analysts at Kaiko Crypto Analytics firm.
The next Federal Reserve rate decision in June is expected to precede Donald Trump’s July 9 trading partner tariff deadline, both of which could cause market-wide volatility, the report said.
According to analysts at Kaiko, the Bitcoin options market is already flashing signs of investors’ expectations. The report says it has drawn a massive amount of strike prices, with expiration dates of $110,000 and $120,000, suggesting that bets on BTC will be making a record move.
Bitcoin briefly surpassed $107,000 during Tuesday’s session, winning 1.2% in the last 24 hours, just 2% below its January record high.
