Whoever coined the phrase “sell in May and go away” had brilliant insight and the performance of crypto and stock markets over the past three weeks has shown that the expression still rings true.
May 20 has seen a pan selloff across all asset classes, leaving traders with few options to escape the carnage as inflation concerns and rising interest rates continue to dominate the headlines.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) taking on water below $29,000 and traders worry that losing this level will ensure a visit to the low $20,000s over the coming week.
As reported by Cointelegraph, some analysts warn that BTC could possibility decline to $22,700 based on its historical price performance following a death cross.
Further evidence of muted expectations from traders can be found in the put/call ratio for BTC open interest, which hit a 12-month high of 0.72 on May 18 according to the cryptocurrency research firm Delphi Digital.
Delphi Digital said,
“A high put/call ratio indicates that investors are speculating whether Bitcoin will continue to sell off, or it could mean investors are hedging their portfolios against a downward move.”
May 20 brought more pain to the traditional markets as the S&P 500 fell another 1.62%, marking a more than 20% decline from its January 2022 all-time high and further stoking recession fears. If the index manages to close the day down 20% from the all-time-high, that would officially put the benchmark index in bear market territory.
The Nasdaq Composite and Dow have also seen significant losses amid the widespread weakness, with the Nasdaq losing 275 points for a 2.42% loss, while the Dow has fallen 362 points, marking a decline of 1.28%.
Related: Crypto veterans extend a helping hand to bear market newbies
Altcoins also sold off sharply as BTC, Ether and stocks pulled back, reversing the gains seen earlier on the day.
The few bright spots were Ellipsis (EPS), Persistence (XPRT) and 0x (ZRX), which gained 30%, 13.92% and 12.34% respectively.
The overall cryptocurrency market cap now stands at $1.234 trillion and Bitcoin’s dominance rate is 44.6%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Anticipation surrounds Bitcoin's potential landmark success in 2024, driven by factors such as the impending approval of a spot Bitcoin ETF, collaborative efforts between regulatory bodies and companies, and the positive impact of the upcoming Bitcoin halving event. The reduction in Bitcoin supply following the halving is seen as a key element contributing to the digital asset's scarcity
SanyaRobert Kiyosaki predicts a financial crisis impacting the S&P 500 and retirement funds.
SanyaIn their quest for the world's most lucrative assets, investors often seek a surefire strategy to accumulate wealth. Is there truly a fail-safe investment that guarantees returns without risks?
BrianA Bitcoin bottom might not be in, given that the team at Goldman Sachs research expects the S&P500 to drop by 9% in the next three months.
MediumBitcoin’s risk-adjusted gains were third best, after only Solana.
OthersThe summer bounce in equity markets probably helped as battered crypto bulls cheer Ethereum's impending technological upgrade..
CoindeskDespite the downturn in the cryptocurrency market this year, Swiss cryptocurrency ETP firm 21Shares has seen record inflows of new cryptocurrencies year-to-date.
CointelegraphDespite crypto markets tanking this year, the Swiss crypto ETP firm 21Shares has seen its new crypto inflows hitting new all-time highs YTD.
CointelegraphThough the protocol offers an arguably lucrative yield of 4% per year, it's only available to accredited investors as of now.
Cointelegraph