Bitcoin Seasonality: Should You Sell in May and Go Away?
According to historical data shared by Bitcoin Magazine Pro, the months from June through September have traditionally been the lowest-performing period for BTC. But while this stretch is known for its modest returns, it hasnt necessarily been unprofitable.
Seasonal Slowdown?
A look at the Bitcoin seasonality chart shows average returns for each month:
- June: +1.38%
- July: +10.33%
- August: +2.15%
- September: -1.83%
Together, these four months still post an average combined return of 12.03%, suggesting that while performance may dip compared to other months, its not a guaranteed slump.
Stronger Months
Historically, Bitcoin has shown much stronger returns in:
- October: +19.46%
- November: +43.74%
- March: +12.02%
- February: +11.40%
These months highlight the often-discussed Q4 momentum in crypto markets.
What Could Investors Do?
The data supports a more nuanced approach than simply selling in May. While summer returns are more muted and even negative in September completely exiting the market could mean missing out on Julys historically solid average of over 10%.
Ultimately, investor strategy will depend on their risk appetite, market outlook, and time horizon. Some may choose to reduce exposure or rebalance during this seasonally weak period, while others may stay the course, anticipating the stronger Q4 rally.
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Text source: Coindoo
