According to a recent analysis, the upcoming Chinese New Year holiday on February 12th may indirectly affect the price of Bitcoin (BTC) and lead to a sell-off in the market.
According to a January 28 report from cryptocurrency investor Stack Funds, continued selling pressure on the bitcoin price is likely to continue in the short term as Asian miners increasingly empty their money ahead of the upcoming weekend.
With more than 60% of global bitcoin mining operations in China, Leonard Neue, research leader at Stack Fund, suggested that much of the sales pressure comes from Chinese miners. The researcher mentioned that the mining center index, or MPI, has recently risen sharply, indicating a subsequent pullback in the bitcoin price. As reported by Cointelegraph, the MPI rose in mid-January 2021 to its highest level since 2019.
Niu concluded that the ongoing sale coincides with the upcoming holiday season, on the condition that the lowest price has not yet been determined:
“With the upcoming Chinese New Year holidays, we expect this sales pressure to continue in the short term, providing good opportunities to enter the market […] We also expect this volatility to continue in the coming weeks, and to put pressure on more adjustments. Bitcoin prices.”
Chinese New Year, also known as the Lunar New Year or Spring Festival, is one of the largest holidays celebrated in the country and usually comes at increased costs.
As previously reported, the cryptocurrency community has long assumed that celebrating Chinese New Year has historically driven bitcoin prices down.
At time of publication, Bitcoin is trading at $ 31,546, up 2.8% in the last 24 hours. After dropping just below $ 30,000 on January 27, Bitcoin has dropped 4.3% in the past seven days.