"Sell in May and Go Away" Will Wall Street's Adage Hit the Mark? Which 3 Coins Should You Sell Immediately?

▲ Tron (TRX)/AI Generated Image ©

As Wall Street's old adage about reducing portfolios ahead of a summer trading slowdown resonates, warnings have emerged that investors should start taking profits on major cryptocurrencies that have seen record gains this year, drawing significant attention.

According to the investment media outlet The Motley Fool on May 25 (local time), historically, summer is the period of the lowest asset returns, making May an ideal time to refine portfolios and lock in profits. Experts point to the progress of the Digital Asset Market Clarity Act, a US cryptocurrency market structure bill, as the biggest turning point that will determine the direction of the cryptocurrency market this year. In particular, projects primarily based overseas are analyzed to likely face unfavorable competitive conditions in the future due to the US's moves to strengthen market dominance and introduce new regulations.

The first asset to be listed on the sell-off list is Hyperliquid (HYPE). HYPE, which has surged by a whopping 80% this year and is trading around $63.33 as of the 24th, is facing the risk of losing its first-mover advantage, which it has enjoyed in the perpetual futures trading market with no expiration date. If the Clarity Act passes, powerful US fintech companies and local crypto-native companies with strong capital will be able to legally expand high-risk derivative services within the regulatory framework, making market share erosion inevitable due to fierce challenges from powerful US domestic competitors.

Next, Tron (TRX) was also identified as a vulnerable asset that could be directly hit by the introduction of regulations. Tron is a key Layer 1 blockchain where Tether (USDT), the world's largest stablecoin, circulates the most. However, the fatal weakness is that both Tether and Tron are based offshore, outside US territorial waters. Under the policy stance of making the US the global hub for virtual assets, the overseas stablecoin ecosystem in a regulatory blind spot cannot be a long-term alternative. The current timing, after a 25% rise this year, is considered optimal for realizing profits and avoiding troublesome regulatory risks.

Finally, in a market environment where investment preferences for risky assets are rapidly cooling, Memecore (M), a Layer 1 blockchain specializing in memecoins, was also identified as an asset that should be fully divested. Investors' sentiment is rapidly shifting from risk-on (favoring risky assets) to risk-off (avoiding risk), intensifying the aversion to highly speculative assets. Indeed, with leading memecoins like Dogecoin falling 10%, Shiba Inu falling 17%, and the official Donald Trump memecoin plummeting 57% this year, it is deemed wise to lock in profits from Memecore, which has risen 100% this year and is currently trading at $2.88, and prepare for a summer correction period.

However, experts advised that not all coins that have risen significantly this year necessarily need to be divested. BitTensor, an AI-combined cryptocurrency, is evaluated to have sufficient room for further gains despite rising about 20% this year, as the AI investment narrative still serves as a strong fundamental. Ultimately, the core of this summer's portfolio strategy is whether one can be free from the regulatory blade of the upcoming Clarity Act, and experts repeatedly emphasized that assets not benefiting from it should be boldly sold before May ends to secure real gains.

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