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Analysis & Opinion

Chinese Spring Festival: the Curse for Bitcoin Price?

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spring-festiva-bitcoin-price-curse

The Chinese New Year. The biggest holiday period for the Middle Kingdom which sees the nation’s residents all return to their respective homes for a family get-together and a celebration of the previous year.

As the lunar moon rises it appears to some that the crypto market will fall as numerous Chinese investors look to cash out in order to save funds for what is invariably an expensive time of year.

However, The Gate.io Research Institute report appears to have put an end to this myth. The paper, entitled  “Bitcoin Historical Events Survey and Spring Festival Holiday Price Trends“, says that:

«…the Bitcoin price changes and the ‘Spring Festival effect’ has little to do with each other.”

Gate.io

According to the report, the curse of the Spring Festival was never actually a problem in the first place. The market shows no real change when the Spring Festival hits across the past few years. The Spring Festival is a RED MARK.

bitcoin-spring-festival-price-change-2014-2015
Bitcoin Price during Spring Festival period in 2014-2015
bitcoin-spring-festival-prive-change-2015-2016
Bitcoin Price during Spring Festival period in 2015-2016
bitcoin-spring-festival-prive-change-2015-2016
Bitcoin Price during Spring Festival period in 2016-2017
bitcoin-spring-festival-prive-change-2017-2018
Bitcoin Price during Spring Festival period in 2017-2018

Not only that, the paper seemed to suggest that special factors such as the general market environment, national restrictions, piracy and fork events of the previous year are still the main factors affecting the price changes of Bitcoin during the Spring Festival.            

spring-festival-price-change-full
Red is UP, green is DOWN

PA news also conducted a study on the apparent mysterious effect of the Spring Festival. This also found that the myth is essentially nonsensical. The report observed that although the market conditions during the Spring Festival are still mainly caused by the big environment and special events, in contrast, the bitcoin market during the Spring Festival is often stable compared to the previous three months.

So there you have it. Asia Crypto Today has broken the lunar moon curse and given you all peace of mind for the Chinese New Year. Maybe we can work our newfound powers on the bear market?!? Although sadly, we don’t think our powers stretch that far…                             

Jason Lee is a writer for various crypto publications and manages a small team on Medium. His love of technology and inquisitive nature set him up with crypto back in early 2016 and he hasn’t looked back since. In his spare time, Jason enjoys rock climbing and wakeboarding.

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