Analytics / Forex and Crypto News
Everyone knows that, despite the generally accepted New Year, which comes on January 1, China also celebrates its New Year according to the Chinese calendar. This year, the Chinese New Year is celebrated on February 12th.
Since the Asian market plays an important role in the formation of the price of Bitcoin, the sell-off that begins before the new year can lower the price of Bitcoin.
Investment company Stack Funds predicts a decline in the price of Bitcoin in its report.
On January 27, BTC already fell below $30000, but was able to recover and now BTC is trading around $31800. Bitcoin capitalization exceeds $ 593 billion.
The pressure on the leading digital currency and other coins will be strengthened, first of all, by Chinese miners. More than 60% of mining pools are concentrated in China. Chinese miners usually sell some of the mined cryptocurrency in order to get cash ahead of the week's vacation.
The Pools Activity Index (MPI) rose to its highest level since 2019. Most likely, preparations for sales are in progress. However, it is not known exactly when the miners will start selling, perhaps they will wait for a slight price increase.
The 12th of February is the Chinese New Year. This is one of the largest holidays not only in the Middle Kingdom, but also in other countries of the Asian region.