While Bitcoin is drawing an upward curve with the good news of’Tesla’, the atmosphere is growing in anticipation of an additional bull market ahead of New Year’s Day. This is because New Year’s Day overlaps with China’s biggest holiday,’Chinese New Year’.
On the 11th, on the global cryptocurrency market relay site’CoinMarketCap’, bitcoin is trading at $45,260 (about KRW 500,000), down 3.18% from the previous day at 8:30 am.
Bitcoin surged shortly after news that Tesla submitted a report to the US Securities and Exchange Commission (SEC) stating that it had “bought $1.5 billion worth of Bitcoin” on the 8th. Bitcoin fell slightly on this day, but jumped more than 56% compared to the beginning of January. On January 1st, Bitcoin was traded for $28986.
The related industry is predicting that some cryptocurrencies, including bitcoin, will face a bull market right after the Lunar New Year holidays. Our New Year’s Day overlaps with China’s biggest holiday,’Chinese New Year’ (this year’s Lunar New Year holiday period is from February 11th to February 17th), and Bitcoin has risen by an average of 10% or more in recent years at the end of the Lunar New Year holiday Showed. Major cryptocurrency trading sites and miners are mostly Chinese, and the movement of Chinese investors has a great impact on the global cryptocurrency market.
In general, investors tend to monetize the amount invested in bitcoin ahead of holidays such as Lunar New Year or Christmas. This is to cover the funds needed for travel or gifts.
However, major cryptocurrency prices rebounded as Chinese investors were buying cryptocurrencies during the Lunar New Year holidays. During the Lunar New Year period last year (January 24 to January 30, 2020), the bitcoin market price rose by 11% from 8411 dollars to 9340 dollars, and the market capitalization increased by about 16.9 billion 86124642 dollars (about 19 trillion won) a week. did.
In addition, Chinese investors are attracting attention as they are trying to match the price of Chinese cryptocurrencies such as Quantum to the lucky number ‘8’. In China, the pronunciation of the number ‘8’ (Ba) is similar to the’foot’ (發, Fa), which means’to make money’, so Chinese people often pick 8 as their favorite number.
An official in the domestic cryptocurrency investment industry said, “In Chinese investors, in celebration of the Lunar New Year, the Chinese cryptocurrency market price was adjusted to ‘8’,” and said, “Before the Lunar New Year, the Chinese cryptocurrency market is rising. There is an impact.” Quantum, which is actually classified as a Chinese cryptocurrency, is trading at $7.57 each, up 47.88% from the previous day at 8:30 am on the day.
As cryptocurrency trading volume increases, mainly Chinese investors, cryptocurrencies issued by Chinese trading sites are also on the rise. Binance Coin and Huobi Token issued by Binance and Huobi are representative.
As of 8:30 am, Binance Coin is trading at $127.81 each and Huobi Token at $13.73 at CoinMarketCap. This is an increase of 15.62% and 19.03%, respectively, from the previous day. Binance Coin surged 245% this year alone, and Huobi Token jumped 209%.
An official from the domestic cryptocurrency investment industry said, “Every new year, cryptocurrency transactions in China increase, and the volume of Binance, which is a representative cryptocurrency trading site in Greater China, increases, and Binance Coin, which is used instead of transaction fees, has increased. “This phenomenon is being captured.”