The post Bitcoin may be in a ‘sell in May and go away’ phase: Analyst appeared on BitcoinEthereumNews.com.

The markets are seeing red.  Mark Wong, HashKey OTC’s head of trading, chatted with Blockworks about the market, giving a little peek under the hood at the overall vibe. “What’s interesting is that there’s been no significant technology of yet to build a catalyst. We do feel that sentiment has been basically revolving around most of the same players,” he told me.  The big catalyst earlier this year was clearly the bitcoin ETFs, which led bitcoin to hit a fresh all-time high following the previous bear market. But now, outflows could signal a “true correction” according to CoinShares, which noted that outflows from the US bitcoin ETFs topped $584 million last week. “We see some dissociation between, for example, bitcoin prices [last] week against the backdrop of soaring stock prices if we look at the S&P. So it does feel as though if there’s a downturn in the overall macro environment… For example, if the [Federal Reserve doesn’t] cut interest rates at the rate that the market wants them to, there may be more pain on the downside.” There’s also the news early this morning that Mt Gox will start repayments next month, but Wong says this is all just “very cyclical.” He told Blockworks he’s currently seeing some profit-taking from early bitcoin adopters, but he also sees buying interest from institutions such as family offices and asset managers. Outside of bitcoin, he’s seeing a trend of folks buying into thematic coins, including real-world assets and DePIN.  “They’re just thematic sort of movements going on in the space, I think,” he said. He’s also watching airdrops as they evolve and he’s curious to see how the “tokens increase their user pool going forward. I think that’s something that we’re also looking at as a firm overall.” In the Empire newsletter,…

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Filed under: News - @ June 24, 2024 8:16 pm