⤵️📉 Why does the market usually drop at the beginning of the month? Truth or myth?
Have you ever heard that "every beginning of the month the market takes a dip"?
🧐 It's not a rule, but there are indeed recurring factors that help explain this behavior. Let's understand:
🔄 1. Profit Taking from the Previous Month's End
Many traders close positions at the end of the month to secure gains.
➡️ This can lead to technical sell-offs at the beginning of the month, putting downward pressure on prices.
🧾 2. Fund Rebalancing
Large institutional funds adjust their portfolios monthly.
➡️ Sometimes this requires spot sales of assets, which can also lead to drops.
💳 3. Salary Inflows = More Liquidity?
With salaries coming in, some believe that new capital stimulates buying.
✅ Yes, but this depends on market sentiment.
➡️ If the market is pessimistic, this liquidity does not hold up against selling pressure.
⚠️ 4. Macroeconomic News
At the beginning of each month, indicators such as payroll in the U.S., PMIs, and inflation are released.
➡️ These data directly impact the markets — especially crypto, which is sensitive to risk appetite.
📌 Summary:
Not every beginning of the month sees a drop, but:
Technical + institutional + macroeconomic factors
= Increased volatility in the first few days.
🎯 The secret is: do not be guided by myths, but by analysis! #calender2025