Bitcoin's price is facing some challenges as April draws to a close. Despite ending the month roughly 10% higher than its starting point, the largest cryptocurrency is showing signs of weakness. However, historical data suggests that this may not be a cause for concern, at least in the short term.
The past 13 years have seen Bitcoin gain in seven out of 13 Mays, with an average return of around 8%. This trend is often referred to as 'seasonal', and it is one of several factors that are supporting a bullish case for the cryptocurrency. The S&P 500 is also showing similar seasonal trends, and it has reached new record highs in recent days.
Another factor supporting the uptrend is strong institutional demand. Back-to-back net monthly inflows into U.S.-listed spot exchange-traded funds (ETFs) have pulled in over $1.8 billion this month alone. This level of interest from institutions suggests that investors are confident about Bitcoin's prospects, at least in the short term.