Bitcoin $105,174.1gained an average of 21 percent every year due to the Chinese New Year. The largest cryptocurrency, which has made similar increases in 11 of the last 12 years, achieved an increase with an 83 percent probability in this period. This performance, supported by seasonal effects, is of striking importance in Bitcoin’s market movements. at this point Chinese New YearLet us note that this year falls on January 29, 2025.
China’s Impact on the Bitcoin Market
Bitcoin marketChina’s influence in China has increased significantly, especially since 2013. While only 1.5 percent of the worldwide Bitcoin trade volume originated from China in 2012, this rate increased to 10.8 percent in 2013 and 70.8 percent in 2014.
capital restrictions, major Bitcoin mining operations and the prevalence of speculative investment mentality were among the main reasons for these increases. Particularly the positive attitude of the state-sponsored media towards Bitcoin attracted the public’s attention to this field.
The record-breaking price of Bitcoin in 2013 accelerated mining activities in China. Mining devices developed in China are the largest cryptocurrencyWith the increase in prices, they began to pay for themselves within weeks. Thanks to these initiatives, China has enabled Bitcoin to rank second in the world in terms of verification nodes.
Seasonal Factors and Future Expectations
One of the most important factors affecting the price of Bitcoin is the expansion of the network’s user base. Because Chinese New Year Events like these increase Bitcoin’s recognition and the number of people investing. Bitcoin’s 20-30 percent appreciation during the Chinese New Year period is a striking example of these effects.
With all this, Bitcoin’s current market situation presents a complex picture. While from a technical perspective, daily indicators have reached oversold levels, weekly signals show that Bitcoin is still in the overbought zone. On the other hand, macroeconomic factors also affect price movements. While the hawkish attitude of the US Federal Reserve (Fed) and shrinking liquidity conditions have a negative impact, the creation of a digital asset reserve in the US and positive policies support the price.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
