Entering a dreaded era for Shiba Inu (SHIB) and other altcoin projects led by the leading crypto Bitcoin (BTC)? The famous bitcoin analyst, nicknamed Nebraskangooner, drew attention to the “sell in May and go away” period, which is generally spoken for financial markets, with his share on his Twitter account. For details cryptocoin.com keep reading.
Will Bitcoin, SHIB and altcoins be sold in May?
Although the cryptocurrency markets are said to be decentralized and independent, they have strong ties to central finance and are often highly positively correlated with US stock markets. As a matter of fact, we can observe this situation from the recent market movements.
‘Sell in May and go away,’ is known as a characterization used for the strategy of selling shares, as the markets believe that the returns are higher on average in the period from November to April compared to other months. Citing this characterization, a popular cryptocurrency analyst nicknamed Nebraskangooner points out that things could get pretty ugly for the market after May:
Sell in May and go away? Typically what happens with Bitcoin (BTC) and crypto in these circumstances is that the market bounces from mid-April to May, then summer gets ugly again and things take a leap in August/September. I’m not making any guesses, just sharing what I remember from the past.
‘Sell in May and go away’ is a motto that is commonly used in US stock exchanges and means ‘sell in May and go away’. Behind this motto lies the sales made by institutional investors before the summer for portfolio cleaning purposes. This spring cleaning is thought to have two main reasons. The first is that it is not preferred to carry a loaded position before the summer months and holidays, which generally offer a calm and relaxed market environment. The second is the desire to realize the profits obtained from the positions created for the new year at the beginning of the year, before the summer.
Looking at the price action of the leading crypto Bitcoin (BTC) in May last year, it is seen that it has regressed from a record level of $ 68,000 to $ 30,000. Considering that the subsequent upward movement started in October 2021, it is understood that the motto in question is not something to be taken lightly. Let’s see if Bitcoin and altcoins will see a similar move this year.
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