For May, the “sell and pull out” tradition in the cryptocurrency market may have given way to a “hold and stay” strategy. Analysts at K33 believe that the strategic uncertainty surrounding Bitcoin 
$103,719 reserves may be overshadowed by positive developments linked to Donald Trump. Historically, the May-October period in the S&P 500 has underperformed compared to November-April. However, returns remain positive, and volatility is increasing. In Bitcoin’s brief 14-year history, recent Mays have seen unexpected rises, encouraging investors to stay optimistic.
Adopting the Hold and Stay Strategy in May
The adage “sell in May and go away” in the crypto market has only a 50% chance of proving correct. As noted by Eric Crown, Bitcoin hasn’t experienced consecutive red candles at the start of May for four years running. K33 analysts Vetle Lunde and David Zimmerman caution that the holiday effect and tax payments might suppress returns. Typically, summer months tend to have fewer upward catalysts, and investor interest slightly declines.
Analysts emphasize that maintaining an active stance and holding positions, instead of exiting the market in May, is crucial to capitalize on the anticipated Trump-effected upward catalysts. Past data, even in the short term, indicates that May hasn’t been dull in the crypto market. Therefore, the “hold and stay” strategy presently allows for risk management while keeping opportunity windows open.
Trump-Linked Catalysts Lift Bitcoin
Trump’s crypto-focused decisions early this year led to forming a Presidential Working Group deepening digital asset oversight. In March, foundations for a “Strategic Bitcoin Reserve” were laid. Approximately 200,000 BTC seized from illegal activities will be accumulated in this reserve. Reports expected from the Presidential Working Group to Trump by the end of June or early July are seen as a spark for new price movements by investors.
Additionally, New Hampshire became the first state to pass strategic reserve legislation, with Arizona, Illinois, Maryland, Michigan, and Texas considering similar steps.
Meanwhile, Trump’s April announcements regarding tariffs triggered volatility in both markets. While a 90-day deferral provides respite through May, tariff issues might resurface mid-summer. Analysts predict that Bitcoin will demonstrate greater resilience compared to stocks during this period.
