Bitcoin prides itself as being mostly independent of market manipulations. It seems that it is however, affected by other, unusual reasons.
According to various experts, the recent drop in price can be attributed to the Lunar New Year…
The Moon? But how?
Ok – we may have made it sound a bit weirder than it really is… The Earth’s Moon itself isn’t responsible in any way, but rather the importance of it to the Chinese. The time before Chinese New Year is similar to the second half of December in many other parts of the World. It’s the pre-holiday time of intensive shopping, travel plans etc.
Bloomberg quoted Alexander Wallin, CEO of SprinkleBit:
“The January drop is a recurring theme in cryptocurrencies as people celebrating the Chinese New Year, aka Lunar New Year, exchange their crypto for fiat currency,”
The actual holiday takes place on the 16th of February, but the time just before it, is when people spend their money. The popularity of Bitcoin in China, coupled with it’s huge population, means that any major event over there, has significant impact on the global market. The pattern emerging over the recent years seems to confirm the fact, that second half of January is the best time to buy Bitcoin.