Should Bitcoin HODL investors sell in May and then disappear?

As the acronym HODL suggests, holding on to life Bitcoin (BTC USD) means you shouldn’t panic just because the price is going down. Collapses are commonplace in the wild world of cryptocurrencies. The best strategy is to simply keep an eye on the future and not worry about seasonal trends with Bitcoin.

In other words, long-term BTC HODL users don’t need to subscribe to old-fashioned ideas like “Selling in May and walk away.” After all, Bitcoin is intended for forward-looking investors, not backward-looking investors. That’s why I invite you to stay in May before the buying opportunity passes.

Job report provides jump-start for Bitcoin

BTC definitely needed a jump start when the time came fell to $56,713 a few weeks ago. A Bitcoin price recovery beganhowever, after the US Bureau of Labor Statistics released its employment report for the month of April.

The US economy was just growing 175,000 non-agricultural businesses Jobs in April, well below the economists’ forecast 240,000 jobs. The unemployment rate in April was 3.9%, above economists’ forecast of 3.8%.

Risk assets, including those with a high technology content Nasdaq Inventory list and Bitcoin surged following the release of the April jobs report. That’s because a cooling labor market means inflation could slow in the coming months, potentially leading to the Federal Reserve finally cutting interest rates.

All of this makes the idea of ​​“sell in May” seasonality seem irrelevant. There was no rate cut at the Federal Reserve meeting in May, but that doesn’t mean there can’t be rate cuts later this year. BTC is very sensitive to changes in central bank policy, but that is not necessarily a bad thing for Bitcoin HODLers in 2024.

More spot BTC ETFs – but not in America

Earlier this year, the US Securities and Exchange Commission finally approved some Bitcoin exchange-traded funds. This was a turning point for Bitcoin and for cryptocurrency and blockchain in general.

Now the phenomenon is spreading beyond the USA. In fact, not long ago there were three spot Bitcoin exchange funds trading started on the Hong Kong Stock Exchange. The companies that offer the ETFs are China AMC, harvest And Bosera.

Unlike the US debut of spot Bitcoin ETFs, the similar event in Hong Kong is unlikely to be a headline event in America. However, it is still an event of significance for the global cryptocurrency market.

Ultimately, it is a sign that the mainstreaming of BTC is having a global impact. So keep an eye out for further developments as regulators and policymakers worldwide 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 an eye on the price. BTC could rise sharply in the second half of 2024 if the Federal Reserve cuts interest rates one or more times.

Additionally, spot Bitcoin ETFs are now available in the US and Hong Kong. Apparently, this is now an international phenomenon and there is a possibility that more countries will approve Bitcoin-related assets.

Consequently, HODL users around the world should continue to buy and hold Bitcoin in May and throughout the year.

At the time of publication, David Moadel did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.