As the acronym HODL implies, holding on for dear life to Bitcoin (BTC-USD) means you shouldn’t panic-sell just because the price dips. Dips are par for the course in the wild world of cryptocurrency. The best policy is to just keep your eyes on the future and don’t worry about seasonal patterns with Bitcoin.
In other words, long-term BTC HODL-ers don’t need to subscribe to old-fashioned ideas like “Sell in May and go away.” After all, Bitcoin is meant for forward-looking investors, not backward-facing worry warts. So, I invite you to stay in May, before the buying opportunity goes away.
Jobs Report Jump-Starts Bitcoin
BTC definitely needed a jump-start when it sank to $56,713 a few weeks ago. A Bitcoin-price rebound commenced, however, after the U.S. Bureau of Labor Statistics released its jobs report for the month of April.
The U.S. economy added just 175,000 non-farm jobs in April, far below economists’ forecast of 240,000 jobs. The 3.9% unemployment rate for April was higher than economists’ prediction of 3.8%.
Risk assets, including the tech-heavy Nasdaq stock index and Bitcoin, jumped after the release of the April jobs report. That’s because a cooling labor market means that inflation may slow down in the coming months, potentially prompting the Federal Reserve to finally cut interest rates.
All of this makes the idea of “sell in May” seasonality seem irrelevant. There wasn’t an interest-rate cut in the May Federal Reserve meeting, but this doesn’t mean there can’t be rate cuts later this year. BTC is highly sensitive to central-bank policy changes, but that’s not necessarily a bad thing for Bitcoin HODL-ers in 2024.
More Spot BTC ETFs – but Not in America
Earlier this year, the U.S. Securities and Exchange Commission finally approved some spot Bitcoin exchange-traded funds. This was a watershed event for Bitcoin, and for cryptocurrency and the blockchain in general.
Now, the phenomenon is spreading beyond the U.S. Indeed, not long ago, three spot Bitcoin exchange-traded funds launched on Hong Kong’s exchange. The companies providing the ETFs are China AMC, Harvest and Bosera.
Unlike the U.S. debut of spot Bitcoin ETFs, the similar event in Hong Kong might not be front-page news in America. Yet, it’s still an event of significance for the global cryptocurrency market.
Ultimately, it’s a sign that the mainstreaming of BTC is going global. So, keep your eyes peeled for further developments as the world’s regulators and policymakers gradually ease their restrictions on Bitcoin-related assets.
The Smart Money Will HODL in May
Instead of using a bearish “sell in May” strategy, I encourage Bitcoin investors to keep their eyes on the prize. BTC could rally sharply in the second half of 2024 if the Federal Reserve cuts interest rates one or more times.
In addition, spot Bitcoin ETFs are now available in the U.S. and Hong Kong. Clearly, it’s an international phenomenon now, and there’s room for more countries to approve Bitcoin-related assets.
Consequently, HODL-ers around the world should continue to buy and hold Bitcoin in May and throughout the year.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
