🥰🥰 What is the typical trend of cryptocurrency prices during the Lunar New Year?
🤩I. Price Trends
1. Prices decrease before the Lunar New Year. Main reasons:
👍Investors withdraw money for personal expenses (shopping, paying debts, gifts).
👍Cryptocurrency liquidity decreases as large investors in Asia temporarily halt trading to prepare for the Lunar New Year.
👍The demand for year-end profit-taking from investors to preserve capital.
2. Prices increase after the Lunar New Year. Main reasons:
👍After the holiday, the market resumes activity, and investors tend to return to cryptocurrencies.
👍Optimistic sentiment at the beginning of the new year, with expectations of higher profits in the new year.
👍Countries like China and South Korea have a history of large capital inflows returning to the market after the holiday.
🤩II. Main Influencing Factors
1. Investor sentiment in Asia
The Lunar New Year is an important time in many Asian countries, where cryptocurrency investors make up a large percentage.
2. The sentiment of "year-end profit-taking" or "buying at the beginning of the year" greatly influences price trends.
3. Market liquidity
The Lunar New Year period often reduces liquidity due to the Asian market taking a break, which can lead to significant price volatility.
🤩III. Notable Historical Statistics
2018: Bitcoin price dropped from $13,000 to $6,000 in February (around the Lunar New Year).
2021: Bitcoin increased from $32,000 to $52,000 after the Lunar New Year, thanks to investor optimism and returning capital.
2022: Bitcoin price fluctuated less due to low liquidity and market sentiment affected by global economic instability.
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