“Sell in May and go away” is advice usually applied to the equity market, but some cryptocurrency market observers believe “sell in May” does not apply to bitcoin. Bitcoin, the largest digital currency by market capitalization, surged 35% in April.
At this writing Friday, the digital currency was up 1.37%, trading over $9,216 with a market value of $164.70 billion.
“However, historical data suggests that bitcoin is more likely to build upon its April rally this month,” reports CoinDesk.com. “Notably, the world’s largest cryptocurrency by market capitalization has scored gains in the month of May in five out of the last seven years, according to CoinDesk’s Bitcoin Price Index.”
Despite bitcoin’s rally Tuesday to start the month of May, some market observers are concerned that declines for the cryptocurrency could reinvigorate bearish traders, particularly if bitcoin posts several closes below the $8,800 area.
May Upside for Bitcoin
Since 2011, Bitcoin has notched only two negative performances; in 2013 and 2015. In May 2017, bitcoin prices surged 73%.
“Furthermore, BTC has fared well in every second quarter since its creation – the highest being 1,964 percent in Q2 2011, when bitcoin jumped from $0.78 to $16.10,” according to CoinDesk.