The cryptocurrency market experienced a significant downturn on May 1, with Bitcoin and other digital assets plunging in value. Bitcoin’s price dropped to as low as $56,552, marking a 5.8% decline over 24 hours and a 13.3% decrease within the week as per Coinpedia news. Veteran trader Peter Brand predicts a potential drop in BTC price to as low as $47,000.
With the beginning of May, investors are adopting the “Sell in May and Go Away” strategy, a seasonal trading approach that originated in the stock market. This strategy involves selling assets after May 1 and repurchasing them after October 31.
However, these concepts were earlier introduced in the 1970s by market strategist Alfred Fielding following his company’s bankruptcy in 1974.
While this strategy has traditionally been more prevalent in the stock market, it has also influenced the cryptocurrency market in some years. Bitcoin prices have historically followed a downward trend in May during specific years, including 2013, 2015, 2018, 2021, 2022, and 2023.
The recent decline in the cryptocurrency market is somehow attributed to the “Sell in May and Go Away” strategy, alongside other factors such as mounting concerns over sustained high U.S. interest rates ahead of the Federal Reserve’s monetary policy decision on May 1.
Investors are concerned that Fed Chair Jerome Powell may reduce the number of planned rate cuts for the year, indicating a more hawkish stance. Additionally, inflationary pressures indicated by recent PCE data and stagflation concerns following Q1 GDP growth of 1.6% have contributed to market uncertainty.
Along with this, the U.S. dollar index (DXY) has risen to 106.45, nearing six-month highs, while the U.S. 10-year Treasury yield (US10Y) has increased to 4.688%, reflecting inflationary impacts on Bitcoin prices.
Crypto analysts have varying predictions for Bitcoin’s price trajectory. Michael van de Poppe anticipates a further decline to $56,000-58,000 before stabilization, emphasizing a 20% decrease from recent highs.
On the other hand, veteran trader Peter Brand predicts a more substantial decline to $47,000-49,000, pointing to bearish chart patterns and a potential longer-term correction.
Despite short-term fluctuations and market challenges, the overall sentiment surrounding Bitcoin and cryptocurrencies remains positive, buoyed by ongoing institutional adoption and increasing mainstream acceptance.
Also Check Out : Crypto Market Prediction: 30% Crash Looms for These Altcoins
Things have levelled out for Pepe (PEPE) in the past day – but crypto whales…
The crypto market is entering a new phase, and it’s becoming increasingly clear that an…
The crypto market is traversing through a sharp pullback today, largely due to profit-taking after…
Coinbase has revealed a security breach where attackers bribed overseas customer support agents to access…
Increasing a portfolio by 15200% within several months is not a fundamentally easy task, but…
In a recent security mishap, Coinbase, one of the biggest crypto exchanges in the world,…
