The old adage "sell in May and go away," that mantra whispered in stock market circles for generations, did not hold true for Bitcoin (BTC) this year. This is likely due to the fact that the pioneering digital currency is not made to follow the script of traditional markets but rather to navigate by its own rules.
In a historic May when Bitcoin reached a new all-time high (ATH) of over $111,000 per unit and with projections pointing to further increases, analyst Michaël van de Poppe warns that following the traditional advice of "selling in May" is counterproductive.
With a price increase of over 11% in May, the analyst now proposes changing that saying and adapting it to the BTC market. From his bullish perspective, that means accumulating with a long-term vision to avoid the psychological wear and tear of daily volatility.
"Buy in May and go away," tweeted Michaël van de Poppe, also highlighting the risks of micromanagement in trading. Constantly monitoring your positions can lead to mistakes, he warns.
This argument is supported by concrete data, such as a study by SSRN published in 2024 that reveals that 98% of traders lose money due to emotional overexposure from trading under states of panic or FOMO.
According to the research platform Coingecko, unlike traditional markets, which may experience a slowdown between May and September, Bitcoin shows distinct behavior. This is evidenced by the increases it experienced in the past, of over 38% in May 2020 and 16% in May 2023, making it clear that seasonal patterns do not apply in the same way as in traditional assets.
Leaving the market prematurely, Van de Poppe believes, could mean missing out on significant bullish catalysts. The Bitcoin market is heating up with increasing corporate and governmental interest, which keeps it firm at the moment in its race towards new highs.
In that sense, the antidote for the analyst is to buy at key technical levels and disconnect, as a savings strategy, inviting a more passive and long-term perspective.
In short, Michaël van de Poppe's proposal goes beyond a simple investment strategy. He rather suggests a paradigm shift towards disciplined and patient investment in Bitcoin, instead of falling for financial sayings that do not fit the market or making impulsive trades due to volatility.
