https://www.msn.com/en-us/money/savingandinvesting/why-investors-should-dread-the-month-of-may--especially-this-year/ar-AAwqxnh?ocid=spartandhp
^ check it.
According to historical data, the stock market bears in May for most years. We've seen thus far that when the stock market does poorly, it affects the crypto market in a similar fashion. What do you guys think about this upcoming May? Will we moon more or will we dip?
It seems to me that institutional investors who are invested in both stocks and crypto will move some crypto out (sell) to help offset their losses from stocks. That's what could drive the price down by a bit.
What are your thoughts?
I'm still not entirely convinced with what exactly the correlation between the stock market and bitcoin markets are, because there is still a lack of institutional investors that are actually actively invested in bitcoin. Plus, we don't know what they would actually do in a bear market situation, there is simply not enough data to gather from.
But simply from analyzing bitcoin's native markets, I think we are definitely going to see some drop offs from the amazing recovery we've had from the $6k bottom all the way up to $9k+ that we are sitting on right now.
And it's not going to be caused by May being historically bad for the stock market or whatever. It's just because I don't think that we're fully out of the bearish sentiment yet, and we're struggling to push over the $10k resistance, which may lead to a pretty sizable dump in May.