Contemplating a cryptocurrency exit strategy with Bitcoin potentially hitting a new record high?
Bitcoin's Revival: Back Above $103k and Chasing All-Time Highs
Crypto's leading star, Bitcoin, has soared past the $103k milestone once more, setting its sights on re-testing its all-time high. As the market rides a wave of green, there's a debate brewing on whether to hang on tight or cash out and take a break in May.
Millionaire exits aren't unheard of in the crypto realm, with the Solana-based sol-1.06% Solana meme token witnessing numerous traders cashing out during the 2024 meme coin bull run. With Bitcoin edging closer to its all-time high, fueled by bullish sentiment from recent catalysts, rising institutional demand for stablecoin and BTC, and a sense of macroeconomic stability due to U.S. trade deals with the UK and China, taking a well-timed exit strategy might have never been more relevant in this cycle.
Millionaire's Missed Exit: A Case Study
Glauber Contessoto, infamous as the Dogecoin doge0.42% Dogecoin millionaire, stacked all his chips on DOGE when he maxed out his credit cards and emptied his savings account, buying $250,000 worth of DOGE in February 2021. However, Contessoto's fame took a darker turn when he made a costly mistake of holding onto his DOGE until the crypto market tanked in 2022, * resulting in massive losses worth nearly $3 million*. Fast-acting traders looking to turn a profit should take Contessoto's example to heart and take advantage of opportunities to sell near potential peaks.
On-chain data from Santiment reveals that for the top three meme coins, DOGE, Shiba Inu shib-1.7% Shiba Inu, and Pepe pepe-1.5% Pepe, a significant number of traders have realized gains close to, or shortly after, local market peaks. The chart below illustrates this trend:
As Bitcoin approaches its local top, following a similar pattern could prove useful for traders looking to time their exits.
Stay or Sell in May?
There's an old saying in stock markets, "Sell and go away in May," suggesting that the market tends to underperform in the six months between May and October. Although this isn't a hard rule for cryptocurrencies, the category being more volatile and prone to price swings compared to the stock market, Bitcoin's current surge above the $100k mark hints at continued momentum through May 2025.
The Road Ahead for Bitcoin and Altcoins
If Bitcoin achieves its all-time high and Ethereum successfully implements its Pectra upgrade, it could propel Ethereum to rally nearly 20% and reach its psychologically important $3,000 level in May 2025. Meme coins, AI tokens, utility tokens, and other altcoins might soon start their recovery, taking inspiration from Bitcoin's lead as institutional investors display interest in relevant crypto sectors.
Selling and going away may not be the best move, especially if staying put or taking profits adds more value to traders' portfolios. Furthermore, Bitcoin monthly returns data from Coinglass suggests that holders usually see gains between June and December of 2023 and 2024, offering opportunities for profit realization or rotation into altcoins.
If Bitcoin revisits its all-time high, approximately 97,000 wallet addresses holding around 108,000 Bitcoin tokens will turn profitable, potentially leading to profit-taking and increased selling pressure for BTC. At the time of writing, the altcoin season tracker has climbed to 67, the highest level in 2025. This suggests we are edging closer to an "altcoin month," or a 30-day period where 75% of the top 50 cryptocurrencies outperform Bitcoin.
Expert Commentary
James Toledano, COO at Unity Wallet, shared his view on Bitcoin's current price action and whether it conforms to market expectations. Toledano stated, "Bitcoin's current behavior appears to be moving in line with market expectations. Anything over $100,000 is a win as we aim for price stabilization and support at this level. After peaking at $109,000 in January, Bitcoin has remained relatively stable within a tight trading range near $104,000 over the past week, indicating healthy consolidation."
The executive believes that the leveling off observed in the top crypto is a sign of increasing macroeconomic caution and may have encouraged some investors to shift focus onto top-tier altcoins like Ethereum eth0.12% Ethereum and Solana. The ongoing Bitcoin bull market may see significant capital rotation, and the token's current consolidation phases signal a maturing asset class that is absorbing prior gains while awaiting new catalysts and inputs.
Ruslan Lienkha, chief of markets, YouHodler, noted that "the upward momentum in equity markets has dampened following the conclusion of tariff negotiations, as short-term traders began taking profits, which triggered a correction. This shift in sentiment has carried over into riskier assets, including Bitcoin." Lienkha suggests that this pullback is a temporary correction within a broader medium-term uptrend, however, ongoing global economic uncertainty and high U.S. interest rates could cap the gains potential for this upward trend.
Caveat Emptor:This article does not constitute investment advice. The content and materials provided are intended for educational purposes only.
Enrichment Data Notes:- Market Conditions: Bitcoin's bull run resumed after a spring drawdown with market sentiment remaining optimistic due to the launch of Bitcoin ETFs and growing institutional interest.- Price Predictions: Various predictions suggest Bitcoin could reach between $100,000 to $285,000 by the end of 2025.- Altcoins: Altcoins follow Bitcoin's trend, with some performing better when BTC is stable or rising. Factors such as market correlation, innovation and adoption, and regulatory environment impact their performance.
- The meme token, sol-1.06% Solana, experienced many traders cashing out during the 2024 meme coin bull run, indicative of a well-timed exit strategy that might be relevant in the current crypto cycle.
- Glauber Contessoto, famously known as the Dogecoin doge0.42% Dogecoin millionaire, missed a profitable exit opportunity when he held onto his DOGE despite massive losses worth nearly $3 million due to the crypto market tanking in 2022.
- On-chain data from Santiment indicates that top meme coins like DOGE, Shiba Inu shib-1.7%, and Pepe pepe-1.5% often see traders realizing gains close to or shortly after local market peaks, with a graph illustrating this trend provided.
- If Bitcoin achieves its all-time high and Ethereum successfully implements its Pectra upgrade, it could prompt Ethereum to rally nearly 20% and reach its psychologically important $3,000 level, with other altcoins following suit as institutional investors exhibit interest in relevant crypto sectors.
- Holders of Bitcoin usually see gains between June and December of 2023 and 2024, providing opportunities for profit realization or rotation into altcoins, according to Coinglass data.
- Upon Bitcoin revisiting its all-time high, approximately 97,000 wallet addresses holding around 108,000 Bitcoin tokens will turn profitable, potentially leading to profit-taking and increased selling pressure for BTC.
- As Bitcoin remains relatively stable near $104,000 over the past week, indicating healthy consolidation, James Toledano, COO at Unity Wallet, views this as a sign of a maturing asset class that is absorbing prior gains while awaiting new catalysts and inputs.
