Bitcoin, 7 Major Negative Factors Concentrated in May Alone...Should We Sell Now and Run?

▲ US, Iran, Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) has fallen 38% from its peak. Furthermore, with 7 major macroeconomic negative factors concentrated in the month of May, the cryptocurrency market has entered its most volatile period in years.

Guy Turner, host of the crypto media outlet Coin Bureau, analyzed in a video uploaded on May 4 (local time) that the statistical superstition 'sell in May' is highly likely to become a real macroeconomic disaster in 2026. Turner pointed to the US crypto market structure bill (CLARITY), which had bipartisan support in the House, becoming deadlocked in the Senate Banking Committee and facing rejection, as a major threat. If the bill is not processed before the Memorial Day recess, the virtual asset industry will return to an era of harsh regulatory enforcement until 2027, without a clear legal foundation.

The confirmation hearing for Federal Reserve Chairman nominee Kevin Warsh is a trigger that could deliver a hawkish shock to the market. A change in the head of the monetary authority in a situation where inflation has not been resolved is a factor that extremely heightens uncertainty in asset markets. In addition, more than 81,000 layoffs occurred in the technology sector, including Meta and Microsoft, in the first quarter of 2026 alone, signaling the full-scale onset of a white-collar recession. Tech workers are being forced to sell their Bitcoin holdings to cover living expenses, rapidly absorbing market liquidity.

The fact that Berkshire Hathaway Chairman Warren Buffett has accumulated a record-breaking $373 billion in cash is a strong signal foreshadowing a market bubble collapse. Buffett took the same defensive stance immediately before the crashes of 2000 and 2008, implying that the value of all assets, including cryptocurrencies, is currently overvalued. The financial crisis of companies holding large amounts of Ethereum (ETH) is also severe. Bit mine Immersion recorded losses of $6.5 billion from Ethereum investments and is on the verge of bankruptcy, while SharpLink has also terminated its asset management contracts, fueling fears of a cascade of liquidations.

Morgan Stanley's submission of an unusual risk disclosure document, mentioning even the risk of quantum computer hacking when launching Bitcoin products, is also dampening the sentiment of institutional investors. Externally, traffic in the Strait of Hormuz has plummeted by 90%, and international oil prices have surpassed $126 per barrel, indicating that skyrocketing energy prices have blocked the Fed's path to interest rate cuts. With South Africa announcing unprecedented strong regulations, including mandatory submission of private keys, the concentrated threats in May maximize downward pressure on the market.

Investors need a strategy to prepare for extreme volatility by reducing leverage to less than 5x and converting a portion of their assets into cash. The success or failure of this entire cycle will depend on whether the market absorbs the complex negative factors and consolidates, or leads to a massive crash.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*