Marking Chinese biggest holiday, The Lunar New Year, the market is again eyeing the bitcoin price. These past years, Bitcoin price always falls when the Lunar new year approaches. And then it surges up again at the end of the holidays. This pattern has been repeating for the past few years.
As we know, the bitcoin price has surged up a lot this January. If there’s the theory on the Corona virus and Afghanistan plane crash, here is another theory on Chinese Lunar New Year holiday.
Chinese Lunar New Year and bitcoin price ups and downs
Perhaps it is because of the past, when the Lunar New Year is approaching, the volume of bitcoin sales has been on the decline. There are various indicators and charts in the market that show how Lunar New Year holiday could negatively affect Bitcoin prices.
However, the price rebounds at the end of the holiday for the past two years. There fore there are many expectations that an upturn will come at the end of the holiday too this year.
CryptoPotato, a media specializing in cryptocurrency, also stressed that in an extremely volatile market such as the cryptocurrency market, past indicators are not a means to predict future outcomes. But the fact that bitcoin prices have fallen around springtime over the past few years cannot be overlooked. According to the analysis of CryptoPotato the price of bitcoin during the spring holidays has fallen for four consecutive years since 2016.
The reason behind the decline is mainly Chinese investors’ cash flow. China usually has a week-long spring holiday. In which investors sell bitcoin to cash in on trips or buy gifts. By the end of the holiday season, Bitcoin has risen by an average of 10 percent a day over the past two years. Indicating that the market is expecting another upward trend.
Bitcoin power in China
The reason why Chinese Lunar New Year holiday git mentioned in the prospect of bitcoin prices is because of bitcoin power that China has after all. Because it has Chinese Bitcoin miners and large cryptocurrency exchanges.
It is a Chinese mining company that controls more than 50 percent of the actual Bitcoin mining pool. According to Blockchain.com., F2Pool, Poolin, AntPool, and VittiC.com are all Chinese mining companies.