Chinese New Year, also known as Lunar New Year ( based on lunar calendar usually falling between 21 January and 20 February ) or the Spring Festival, the event sees Chinese people from around the world hold big family reunions, travel abroad, and give substantial gifts to those close to them. It is one of the world's most prominent and celebrated festivals, with the largest annual mass human migration in the world. Many investors pull funds and consolidate over the period. It is a major holiday in China and has had strong influence on the lunar new year celebrations of its geographic neighbors, including Taiwan, Hong Kong, Macau, Singapore, Indonesia, Malaysia, Korea, Thailand, Vietnam, Cambodia, Mauritius, Australia and the Philippines.
Asia dominates the crypto trading market on a volume basis. Cryptocurrencies are much bigger in Asia than in the Western world. China made up around 60% of the crypto market and they hodl 75% of the money. Ultra mega trading, mining, manufacturing and pools are there in china and what happens to the market at the time of the Asian Lunar New Year without fail? People start spending loads of cash on gifts! They spend it on airfare! They want to spend money on their spouses! It’s a time for celebration! Many presents are bought, vacations are planned, and trips are taken. The stock market turned cash machine.
Most (all) airlines don’t take cryptocurrency at all — so they have to turn it into anneal money (also known as ‘fiat’) somehow. They can’t go to the crypto bank and withdraw cash directly, so they end up selling their alt coins & bitcoins. Chinese stores are closed and manufacturing hub shuts down until the Chinese New Year celebrations. That’s what drives down the price.
Recently, China blocked all websites that have anything to do with cryptocurrencies to further the country’s steps towards regulations. Perhaps this year, Chinese New Year won’t have as devastating an effect on the crypto market because of all the regulations that have been put in place. If in case happens there is nothing to be surprised about. The dip is nothing to be afraid of — it happens because people are comfortable with spending money. If you have already invested in crypto world just take your backseat and HODL else ready for the dips to buy cryptos at cheap rates!
May this New Year equip you with good luck, good health, good fortune and good times! Happy Chinese New Year! :)