From the trenches of a tariff-hit market last month, Bitcoin has re-emerged in the beginning of May, rising its value from $79,400 in the first week of April to currently crossing the $100k barrier in the first week of May.
As markets begin to stabilize, the ‘May Phenomenon’ returns to the spotlight. Historically, May has been an happening month with either massive Bitcoin rallies like in 2017 or the altseason of 2021. Here’s a quick look at what history tells us, and what we might expect this time around.
May in Crypto:
May has been a pivotal month for crypto. In bull years like 2017 and 2019, Bitcoin grew by 107% and 68% month-to-month respectively. Such surges have been driven by fresh retail inflows and institutional interest – a theme recurrent in 2025.
However, in May of 2021, Bitcoin fell to as low as $36,000 dollars, and it was altcoins that led the charge. The combined market capitalization of the top 100 altcoins reached around 130% of Bitcoin’s, marking a new high for crypto markets.
Why May Matters:
A combination of technical, psychological, and macroeconomic factors are in play:
For one, in the US and many other countries, April marks the end of the tax season. By May, most investors are trying to rebalance their portfolio with fresh capital and a tendency to move towards risky assets is not unusual.
Further, May falls midway between Q1 earnings and Q2 financial planning for institutions. This i usually when any pent up institutional demand starts finding expression. In a bull year, such demand fuels altcoins too as many crypto projects reach major milestones of their annual roadmaps by this time.
Since May has coincided with massive retail entries in the past, media attention is higher in the month. Thus, the liquidity, combined with momentum often leads to amplification of existing trends.
May 2025: What to Expect
Several long-term crypto investors have analysed the market patterns to predict a bullish May in 2025.
Defi Researcher on X – CryptoNobler put forth that the altcoins are forming a ‘golden cross’, a bullish technical signal that is identified when when the 100-day moving average crosses above the 200-day moving average. The signal was last identified in 2021, and is thus being seen as an indicator of the onset of the much awaited altseason in May.
With April’s tariff-induced volatility subsiding and historical patterns favoring May, optimism is building for a potential altcoin breakout. In the last week, Bitcoin too has risen by over 5% and is currently trading above the psychological price point of $100k.
While past trends don’t guarantee the future, the stage is set for May to deliver a strong comeback for crypto markets.
