Bitcoin price broke back above $9,000 this morning, making this the second time this month that has happened. Following last week’s slide down from that level, all losses have been reversed since the weekend. So what could be responsible for bitcoin’s change in fortunes?
End Of Chinese New Year
The Lunar New Year always has an effect on bitcoin trading volumes, as Chinese traders take a few days off to celebrate. Despite cryptocurrency trading being technically banned in China, workarounds whereby traders use other Asian markets mean that it is still statistically significant.
BitMEX CEO Arthur Hayes predicted that volatility and trade volume would ‘nose-dive’ as the New Year approached. Indeed, in the week leading up to the New Year, daily volumes dropped by 50%, as BTC price followed them down from $9150, reaching as low as $8325…
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