I see many people panicking about the situation and the drop in the Crypto Market.
As a conservative financial markets analyst I have to say upfront that my experience in Crypto are limited.
I am “bag-holding” some currencies from early stage where I liked the theory behind it; but never traded active one of them.
But since commercials (Banks & Big Players) have a look on the crypto market especially on the Bitcoin, some of you should read up some “Trading Wisdom” that is often ruling major markets as equities.
“Sell in May – Go away.” – What does it mean and has it an effect on Cryptos?
This Phrase refers to the merchants and bankers who liked to leave the city of London and go to the country to escape the heat during the summer months. St. Leger's Day refers to the St. Leger's Stakes, a thoroughbred horse race in mid-September.
American traders who are likely to spend more time on vacation between Memorial Day and Labor Day mimic this trend and have adopted the phrase as an investing adage.
Is this phrase true?
Short, mostly yes but not every year. The DOW ( Down Jones Industrial Index ) has since 1950 an average return of 0.5% from May to October. In November to April it averages a return of 7.5% per Anno.
Does this effect also applies for Cryptos?
Well, Cryptos are new and it is fragile to analyze such „commodities“. Nevertheless, I think it is not bad to keep things like this in mind when you actually know that big players are in the game as well.
It would be great if you could leave me an honest comment. I am new in the Steemit-Thing and with honest feedback; I can work better on the quality of my blogs.
Greetings
George