Cryptocurrencies have emerged as one of the most attractive investment options due to their constantly fluctuating prices, particularly for those who like to take risks for great rewards. The cryptocurrency market has been in a downtrend for some time, but the Lunar New Year has arrived, bringing with it new opportunities for investors.
The Lunar New Year
Chinese New Year is observed on a different day each year because it is based on the lunar calendar. This year the Lunar New Year will start on January 22nd and end on January 24th. In China and many other countries around the world, people celebrate this time, usually with family reunions and celebrations.
The term "Lunar New Year" is used to describe a holiday that has many of the same customs as China. It uses 12 zodiac signs, each naming a year, including the current year, which is the year of the rabbit.
Many over-the-counter (OTC) services in China will be shut down during this time, which could cause significant volatility in cryptocurrencies. Also, Bitcoin surged to its highest level since August ahead of the Lunar New Year holiday celebrated across Asia.
The Lunar New Year benefits cryptocurrency traders
The Lunar New Year has a significant impact on cryptocurrency prices. The total market capitalization of cryptocurrencies has surpassed $1.000 trillion, with Bitcoin hitting its highest level since August ahead of Lunar New Year celebrations.
The leading cryptocurrency rose 2,1% to $22.872, hitting its highest level since August 18, 2022. Want to take advantage? Then you can use Bitcoin Revolution. Furthermore, the second-ranked cryptocurrency, Ether, recorded a 2,4% increase, the highest rate since September.
As the Lunar New Year begins, which is celebrated in most of Asia, the prices of many well-known cryptocurrencies are soaring. This happens because more and more people think that the cryptocurrency market has passed its nadir.
Winning with this Bitcoin Lunar New Year strategy
According to Markus Thielen, head of research at Matrixport, buying Bitcoin towards the end of the first day of Chinese New Year and selling it 10 days later would lead to an average return of +9% over the previous eight years. Additionally, he said the start of Chinese New Year is historically a great entry point for long holdings.
The rally comes as cryptocurrencies have historically performed strongly at the start of the Lunar New Year holiday. This suggests that crypto traders are taking advantage of the Lunar New Year.
Binance is celebrating the Lunar New Year
The leading cryptocurrency exchange in terms of daily trading volume is Binance. Binance Futures launched a new community thank-you initiative on January 22, offering eligible individuals the opportunity to split up to 50.000 USDT. Traders can enjoy several special trading benefits to welcome the Lunar New Year.
Binance is back with another eventful schedule for the Year of the Rabbit. From January 16th to February 8th, users will be able to join the fun and jump into the new year with great prizes and limited-time incentives, including cashback offers, exclusive discounts, crypto rewards and much more.