Bitcoin’s Chinese New Year: Will It Soar or Just Snore?

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Ah, Bitcoin. The cryptocurrency that’s like that one friend who always shows up to the party uninvited but somehow manages to steal the spotlight. Today, it’s up over 3%, which is like saying your cat finally caught a mouse after three weeks of staring at the wall. But hold onto your wallets, folks! A recent report suggests that BTC might just rally by 20% this Chinese New Year, if history decides to play nice. 🎉

Why BTC Can Rally This Chinese New Year?

Let’s talk about the Chinese New Year, a time when families gather, exchange gifts, and apparently, trade Bitcoin like it’s the hottest new toy. According to Matrixport, Bitcoin has been on a winning streak during this festive season, with an 83% success rate over the last 12 years. That’s right, 11 out of 12 years! If Bitcoin were a student, it would be the one with a 4.0 GPA and a scholarship to the University of Cryptocurrency. 🎓

Back in 2014, China was the big boss of Bitcoin, controlling nearly 70% of global trading. It was like the country was hosting a massive Bitcoin buffet, and everyone was invited. Strict capital controls and speculative investments turned the nation into a Bitcoin powerhouse, while the tech sector was busy building mining rigs like they were assembling IKEA furniture. 🛠️

As more people hop on the Bitcoin bandwagon, the cryptocurrency gains momentum. But let’s be real—nothing quite compares to the Chinese New Year when it comes to cranking up the excitement. 🎊

Major Technical, Macroeconomic, & Global Factors At Play

Matrixport has pointed out that Bitcoin’s current price is like a seesaw, influenced by conflicting forces. On one side, we have oversold indicators suggesting potential support, while on the other, weekly metrics scream “overbought!” It’s like watching a soap opera where everyone is just a little too dramatic. 📉📈

And let’s not forget about the Federal Reserve, which is tightening liquidity like a parent who just found out their kid has been sneaking cookies. But wait! There’s hope! The prospect of a US Bitcoin Strategic Reserve under a pro-crypto Trump presidency is like a shiny new toy for investors. 🎁

Trump has been making promises about crypto like a kid promising to clean their room—lots of enthusiasm but little follow-through. Still, the market seems to be eating it up, especially after the SEC decided to rescind the SAB 121 crypto accounting rule. It’s like they finally decided to let the kids play with the big toys. 🧸

Meanwhile, stablecoin minting is as quiet as a library post-December’s FOMC meeting, signaling limited fiat inflows. But don’t worry! Funding rates for Bitcoin are showing early signs of recovery, like a plant that just won’t die. 🌱

Can BTC Surge 20% This Chinese New Year?

The Chinese New Year kicks off on January 29, and it’s statistically significant for Bitcoin. In 2022 and 2023, Bitcoin surged by 26% and 23%, respectively. It’s like the cryptocurrency is on a rollercoaster ride, and we’re all just holding on for dear life. 🎢

Matrixport analysts are calling this the “most favorable 20-day window” for Bitcoin. Traders are licking their chops, ready to pounce on long positions like a cat on a laser pointer. But let’s not get too excited—recent news of China dumping its BTC holdings has put a damper on the festivities. 🎭

What’s Next For Bitcoin Price?

Today, BTC is trading at $105,489, with a trading volume that’s soaring like a kite on a windy day—up 65% to $99 billion. It even touched an all-time high of $109K on Trump’s inauguration day, which is like the market’s way of saying, “Look, I can be optimistic too!” 🥳

With global leaders suddenly interested in Bitcoin, the ongoing rally could be just getting started. A recent analysis suggests a potential rally to $120K, which is like saying your favorite band is reuniting for a world tour. Get your tickets ready! 🎟️

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2025-01-24 12:31