Blockzeit
  • News
    • Business
    • Politics
    • Metaverse
    • NFTs
    • Markets
    • Investing
    • Technology
    • Trends
  • Tools
    • Crypto Charts
    • Crypto Heatmap
  • Education
    • Reviews
    • Guides
    • Bitcoin Price Analysis
  • Crypto Exchanges
No Result
View All Result
  • EnglishEnglish
    • EnglishEnglish
    • DeutschDeutsch
    • PortuguêsPortuguês
Buy Crypto
  • News
    • Business
    • Politics
    • Metaverse
    • NFTs
    • Markets
    • Investing
    • Technology
    • Trends
  • Tools
    • Crypto Charts
    • Crypto Heatmap
  • Education
    • Reviews
    • Guides
    • Bitcoin Price Analysis
  • Crypto Exchanges
No Result
View All Result
Blockzeit
No Result
View All Result
Home Politics
Crypto and Chinese New Year Photo Source: iStock

Crypto and Chinese New Year Photo Source: iStock

The Correlation of Crypto and the Chinese New Year

Giancarlo Perlas by Giancarlo Perlas
January 24, 2023
in Politics
Reading Time: 4 mins read
0
Share on FacebookShare on TwitterShare on LinkedinShare via WhatsappShare via Email

For centuries, the Chinese have been celebrating the start of the Lunar New Year with traditional festivities, but in recent years, there has been a growing correlation between crypto and the event. From Bitcoin’s emergence in 2009 to its continued growth over time, cryptocurrencies have become an increasingly popular option for creating and storing wealth during these special occasions. This article explores this connection, which focuses mainly on the effect it has had on businesses and governments worldwide.

The Chinese Connection with Crypto

Cryptocurrency was quickly introduced to the Chinese population in 2009 when Bitcoin was created. It quickly became a popular form of investment for them over the years despite the rocky treatment of their government with cryptocurrencies. In fact, China is considered to be the 10th in the 2022 top global crypto adoption index of Chainanalysis.

To date, Bitcoin, as well as a number of other popular cryptocurrencies, are reportedly banned. Despite China’s hostile behavior over it, David Lesperance of Lesperance & Associates law firm asserts in an interview with Cointelegraph that the Chinese government never overtly prevented individuals from holding and trading them, so it remains safe to hold and trade them within the country.

The Significance of Gold and Crypto in the Chinese New Year

In Chinese culture, gold is thought to be the harbinger of great luck, fortune, and prosperity. In addition to representing the power of royalty throughout China’s history, yellow and gold hold a special meaning in their religion as well.

These colors are always prominently featured during New Year festivities due to their grand symbolism for good tidings in the coming year. Gold stands out among other hues as a beacon of hope that will help guide them throughout the coming year.

Now how does this piece of information relate to crypto? Well, both commodities are considered to be effective hedges against inflation and have recently been closely linked with each other over the years.

In spite of their poor performance in the previous year chiefly due to the rallying value of the US dollar. A bull run is expected for them this year, and as early as January, this prediction is gradually holding water. The current trend has already seen gold gaining a positive momentum since November 2022 while Bitcoin and other crypto prices are likewise slowly recovering their lost value over the bear market from the last half of 2021 up to last year.

Digital assets, particularly crypto, are liquid similar to gold. However, technological advancements and increasing levels of Internet connectivity have paved the way for their wider accessibility and lower minimal transaction fees. Their decentralized nature and the potential of their investors to remain anonymous further make them more attractive to investors. All these basically make crypto potentially more appealing storage of wealth compared to gold nowadays.

The Behavior of Bitcoin and Other Cryptos on This Occasion

For the most part, Bitcoin and other cryptos tend to drop during the Lunar New Year. According to Boxmining, their tanking prices on this occasion are attributed to a decrease in trading volume, market makers going on a holiday break, and more people cashing in on their earnings.

The festivities tend to lead to a decrease in crypto trading during the week-long celebration leading to the event. This can be due to many Chinese crypto holders opting to get their focus on the celebration of the New Year while others are opting to hold their investments amid the price drops to prevent losses.

Most crypto-related business owners, investors, and traders also tend to stay away from their respective platforms in favor of spending some quality time with family members. Asians, particularly the Chinese, enjoy close family ties that even extend to relatives. Thus, they have a habit of spending special events, including the Lunar New Year, with each other.

Finally, more people usually take this opportunity to convert their digital funds into physical cash or other forms of liquid assets to be used to enjoy the different activities offered by the occasion.

All these sudden surges in the demand for liquidity puts pressure on the market, which makes it prone to drops in prices during the Chinese New Year.

Final Thoughts

The Chinese New Year has been a popular time for celebrations around the globe, but it is becoming increasingly clear that its effect extends beyond traditional festivities. This can be seen as a cue to potential investors when to buy or sell leading to or during the event.

The aforementioned points are important to consider when trading cryptocurrencies. Traders should always be aware of the current trends and any potential changes in the market that could affect their strategies during the process though.

Overall, we believe that investing in well-established cryptos — such as Bitcoin, Ethereum, Tether, and Dogecoin — remains a viable option for wealth preservation despite the negative correlation of cryptocurrencies with the Chinese New Year. This type of commodity has proven its worth over time, so it is still worth considering during these times of celebration as long as investors exercise vigilance and proper risk management efforts along the way.

Previous Post

How to Manage Taxes for Your Crypto Portfolio?

Next Post

How Blockchain Can Overhaul the Automobile Industry

Related Posts

Saudi Central Bank (Saudi Arabian Monetary Authority)

Saudi Arabia Central Bank Announces Experiment On CBDCs

by Rickie Sebastian Sanchez
January 27, 2023
0

Even though there are no plans to implement central bank digital currencies at this time, the Saudi Arabian Monetary Authority...

HM Treasury

UK Treasury Is Hiring A CBDC Head To Develop The Digital Pound

by Rickie Sebastian Sanchez
January 27, 2023
0

A candidate is being sought by the UK Treasury to direct the Government's strategy for the implementation of a central...

images 2023 01 18T113809.573

Russia And Iran To Deploy Gold-Backed Stablecoin

by Ken Emmanuel
January 18, 2023
0

Russia and Iran are collaborating to introduce a cryptocurrency backed by gold, called a "stablecoin," intending to replace the US...

Load More

Get updates to your inbox!

Subscribe to our mailing list to receive daily updates!

FOLLoW US:

Blockzeit Logo 10 1

Blockzeit was founded in 2021 in Switzerland with the mission of bridging the gap between the complex blockchain technology and the general public. Blockzeit is a news and education platform that aims to make blockchain more accessible and bring more transparency to the scene.

Popular Categories

Categories
  • Bitcoin News
  • Business
  • Education
  • Investing
  • Markets
  • Metaverse
  • NFTs
  • Politics
  • Press Release
  • Switzerland
  • Technology
  • Trends
  • Uncategorized

Important Links

  • Privacy Policy
  • Disclaimer
  • About us
  • Contact us
  • Blockchain Jobs
  • Events

Contact & Social

For guest posts, contact us via info@blockzeit.com

 

Contact: info@blockzeit.com
Press: press@blockzeit.com

Facebook Twitter Linkedin Instagram
  • Home
  • Markets
  • Investing
  • Technology
  • Trends
  • NFTs
  • Education
  • Events
© Copyright by Blockzeit.com. All rights reserved.

Disclaimer

Start making money with crypto.

Buy Here
No Result
View All Result
  • News
    • Business
    • Politics
    • Metaverse
    • NFTs
    • Markets
    • Investing
    • Technology
    • Trends
  • Tools
    • Crypto Charts
    • Crypto Heatmap
  • Education
    • Reviews
    • Guides
    • Bitcoin Price Analysis
  • Crypto Exchanges
  • DeutschDeutsch
  • PortuguêsPortuguês

© 2021 Blockzeit by Blockzeit.