Bitcoin Flat as Traders Look Forward to the 'Year of the Dragon'
Bitcoin (BTC) maintained a flat trajectory, hovering around $42,000 early on Monday, while the #coindesk 20 Index (CD20) experienced a 0.75% decline, reaching 1,643, according to CoinDesk Indices data. This movement coincides with the last working days before the Lunar New Year holiday in East Asia, where nations are preparing to celebrate the start of the Year of the Dragon, considered one of the luckiest and most prosperous animals in the Chinese Zodiac.
In anticipation of this Lunar New Year, CLSA, a Hong Kong-based brokerage firm, predicted market fluctuations for 2024, linking a calmer outlook to the Year of the Rabbit. Despite the cautionary advice, the market rebounded significantly in 2023, with Bitcoin surging nearly 94% and #Ethereum (ETH) rising by 47%.
The CoinDesk Market Index, outperforming the S&P 500 by fivefold, was largely attributed to Bitcoin's stellar performance, although Ethereum underperformed throughout 2023. Daniel Wang, CEO of Taiko, a zero-knowledge roll-up platform, sees potential for Ethereum's price performance in 2024, stating that the Year of the Dragon could open new doors for Ethereum, especially with the anticipated impact of ETFs and the awaited Dencun upgrade promising lower gas fees and faster transactions.
Lucy Hu, a Senior Analyst at Metalpha, points to the promising aspects of Bitcoin's halving and inflation control for prices in the Year of the Dragon. Despite the current sell-the-news effect in the #CryptoMarket , Hu expects the year to be one of the best performing, driven by controlled inflation and the upcoming Bitcoin halving event, fostering market confidence and leading to new heights.
In traditional finance, CLSA predicts a resurgence in equity markets in the second half of the year, dubbing it a year of volatility. Despite the anticipated market turbulence, CLSA reminds investors to seek professional advice rather than relying on celestial guidance.
Source - coindesk.com
