Chinese New Year (Lunar New Year) is just around the corner. It often has a strong impact on cryptocurrency prices. Chinese New Year and Bitcoin have a ‘red’ past as the price of this cryptocurrency fluctuates dramatically in his January.
Lunar New Year is based on the lunar calendar, so it is celebrated on a different day each year. This year’s Chinese New Year He will start on January 22, 2023 and end on January 24, 2023.
During this time, many Chinese over-the-counter (OTC) services will be closed, leading to high volatility in cryptocurrencies. Research shows that bitcoin always experiences a price drop of 15% to 50% in early to mid-January, which often causes bitcoin to drop to yearly lows. Will it coincide with the Bitcoin genocide, as it has in the past?
Bitcoin’s recent price surge
With Bitcoin above $21,000, the cryptocurrency market is booming. The level was crossed on Saturday for the first time since November 8, 2022. Bitcoin’s price remained in a narrow range around $16,000 to $17,000 in the weeks leading up to the latest breakout.
According to data from CoinMarketCap, the overall market capitalization of the cryptocurrency universe surpassed $1 trillion over the weekend for the first time since early November. According to data from CoinMarketCap, today’s global cryptocurrency market capitalization has risen by more than 2% in the past 24 hours to $1.4 trillion.
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Chinese New Year and the History of Bitcoin’s Falling Price
In the weeks leading up to the Chinese New Year, Bitcoin is in constant red. In 2019, the price of Bitcoin steadily fell from $3,491 just before the Lunar New Year to his $3,397 during the holiday season.
According to CoinMarketCap, the price fell below the US$8.3 thousand resistance during 2020 before the Lunar New Year. It recovered to $8.5 million on the first day of vacation. But history couldn’t help repeating itself, and in the same day he plummeted below $8.3 million.
In 2021, the tide seemed to turn as it gradually climbed from $32,000 to $39,000 in the first week of February and surged to $48,000 in two days in the days leading up to the festival. However, during the Chinese New Year, the price still started back up to $46.2 thousand. Luckily, this didn’t wipe out the pre-Spring Festival gatherings.
In 2022, the price plummeted to below $37,000 just before the end of the year. Bitcoin price then surged towards its peak above US$39,000 in the middle of the Chinese New Year.
Bitcoin Price Prediction in 2023 and the Impact of Chinese New Year
Looking at Bitcoin’s recent performance, experts believe that history probably won’t repeat itself this year. The exhaustive debate about what to expect from Bitcoin in 2023 has raised some questions for experts. No, but there is a general feeling that there are a few factors other than festivals weighing on the coin’s value.
Also read: Bitcoin price to $65,000?Here’s what on-chain data and analysts suggest
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