"Buy the May Dip and Go Away", Bitcoin (BTC) Price Poised to Break Its January Record

"output: "Sell in May and go away," goes the Wall Street adage for equity markets every summer. For bitcoin

The sunny season in Europe may bring light breezes and warm temperatures, but it's also typically a time to unwind in the markets.

However, this year, the adage "sell in May and go away" might not apply to bitcoin (BTC) as several positive developments in the U.S. and institutional outlays in the past few weeks bode well for further gains in the next few months, according to an analyst at crypto trading firm Wincent.

"As we get into the European summer months, the sense is it's more likely a case of 'buy in May and go away' than any significant headwinds or selling pressure," Paul Howard said in a market note.

A confluence of positive regulatory developments around digital assets in the U.S. and increasing institutional buying both via exchange-traded funds and spot allocation is poised to push BTC higher in the next months, he added.

U.S.-traded spot bitcoin ETFs, for example, pulled in $667 million in net inflows on Monday with BTC pausing just below its January record, underscoring persistent demand, Howard noted. The vehicles attracted $3.3 billion in May, per SoSoValue.

On top of that, there's been a flurry of companies joining Michael Saylor's Strategy (MSTR) adding bitcoin to their treasury, financed by debt and stock issuances.

"As we edge closer to a $4 trillion market cap for digital assets, we will see BTC cross all-time-highs in the coming weeks," Howard said. The total crypto market cap currently stands at around $3.3 trillion, per TradingView data.

Bitcoin briefly topped $107,000 during the Tuesday session, gaining 1.2% over the past 24 hours and trading just 2% below its January record high.