Hello my fellow bloggers! Today I want to discuss what we should expect from New Year holidays in China. Some people expect BTC to go down because of these holidays. Let’s dive in and investigate.
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First, let’s discuss the reasoning behind this rumors. Usually, we see the following arguments for BTC to go down during lunar New Year:
- Chinese investors hold a significant portion of all crypto market. Many of them would want to take some profits to spend money on holidays
- Chinese investors will not be on the market to support BTC price
- All other investors believe in the above two reasons and will act like BTC dump is coming.
The last reason can be a real one. Crowd doesn’t move logically and rumors and expectations are important. The other two reasons are not really true. Holidays doesn’t mean Chinese investors will not be able to participate in the market. Yes, people a moving around the country during these days, however you just need a phone or laptop to stay online from any part of the country. Takin profits specifically for holidays is not what large investors do and small ones are not that important.
What is more important is statistics. Find stats for previous years below:
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The chart shows previous 5 years. As you see, BTC always performs well during Chinese Ney Year holidays. At average, the price raises ~7.5%. If we will see the same in 2021, the price of BTC will be in a very good shape and will not drop from current prices. And the last reason for BTC to perform well – we are entering a year of an ox, bears are not welcomed here.
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Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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