Will the Chinese New Year crypto effect take hold again this year?
Chinese New Year is on February 16th this year and the crypto market is holding its breath until the date passes. Why? In the past, Chinese New Year has caused crypto prices to plummet.
Asian countries (China in particular), account for a huge portion of crypto trading.
This becomes pretty evident when news breaks about some regulation or another regarding cryptocurrencies in those countries, and the crypto markets crash as a result. This occurred not too long ago when fears spread that India was banning cryptocurrencies altogether (it wasn’t).
Chinese New Year has often been attributed to some major crypto selloffs in previous years.
Bitcoin, in particular, seems to dip in the weeks prior to the lunar new year.
This year seems to be no different in regards to Bitcoin. As can be seen in the chart below, Bitcoin has been declining in the past month, going from around $18,000 to its current price of $7,158.13.
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Is this the Chinese New Year effect in action, or is it something else?
Recently, China blocked all websites that have anything to do with cryptocurrencies to further the country’s steps towards regulations.
The result was yet another crypto crash across the board.
Many things can be used to explain why Bitcoin is falling lately, from regulations to approaching holidays and beyond. Perhaps this year, Chinese New Year won’t have as devastating an effect on the crypto market because of all the regulations that have been put in place.
Then again, there are always ways around the system. Already today, many coins are in recovery; of the top ten tokens by market cap, only Bitcoin Cash is down.
Will the tradition continue?
BITCOIN CHINESE NEW YEAR PRICE DUMP INCOMING??
Will we see yet another crypto fallout because of the Chinese New Year? Or is the rocky market going to be too volatile to tell?
Side note: this year is the year of the dog.
Do you think Dogecoin, the dog-related token, will earn any wins because of that?
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Featured image: Daily Hive