Bitcoin Dip? Why the Lunar New Year is a Good Thing

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Bitcoin has been booming recently, and if you’re like me, you definitely have a full stock of cryptocurrencies — everything from Ripple (XRP) to Ethereum (ETH) just to make sure you don’t miss out on the next boom. But my portfolio and yours might not touch those of Asian investors.

Bitcoin: Asia Dominates

Asia dominates the crypto trading market on a volume basis — and this accounts for most of the money that goes both into and out of most cryptocurrencies. That is why Asia is an important area for growth when considering your portfolio over the next few weeks, months, and years.

So when you see that notification on your iPhone mentioning yet another crash, remember this: there is a reason for everything. The reason at the moment may not seem very clear, but nine times out of ten, if you take a look at the current situation and view it through the lens of history, you are better off when it comes time to making the final decision.

So what is the reason for the most recent crypto crash? And will the market recover? Of course it will. Let me tell you why.

The Lunar New Year!

Asians have a lot of money. Well, it’s not just Asians, it’s everyone. But when it comes to money made from crypto, it’s  mostly Asians. Cryptocurrencies are much bigger in Asia than in the Western world. 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!

And how do they do that? They have to cash out their money somehow. Most (all) airlines don’t take bitcoin at all — so they have to turn it into anieal money (also known as ‘fiat’) somehow. They can’t go to the bitcoin bank and withdraw cash directly, so they end up selling their altcoins for bitcoins and subsequently sell their bitcoins for fiat. That’s what drives down the price.

What else happens? Well, the Lunar New Year is also the time when the largest annual mass migration of people across the globe occurs — it’s high time for travel. In just over two weeks, hundreds of millions of people are going to be traveling. That’s a lot of money — even by BTC standards.

bitcoin new year

The cryptocurrency trading market is not like Wall Street. People don’t buy bitcoin like they do shares of stock. So think of it this way: if the stock market is a Wall Street investment programme, the bitcoin and crypto markets are retail. Wall Street markets experience huge gains during the holiday season when everyone and their mum goes to House of Fraser or Debenhams to buy gifts. Well, the retail investment market is the opposite because investors are going to sell for extra cash. What happens after those holiday seasons? They buy back up again for that next big bitcoin profit.

This is obviously nothing new. The Great Lunar New Year Bitcoin Selloff has happened every year for the past four years. This is nothing to be surprised about. The dip is nothing to be afraid of — it happens because people are comfortable with spending money.

So if you take a backseat and HODL like there’s no tomorrow, you won’t be disappointed. Just relax and think of the green arrows you’ll inevitably be seeing by mid-February. Now get out there and buy BTC and XRP at those low prices!

While you’re here, check out some great recipes like this one for Beef Stroganoff Italiano


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