Bitcoin’s value soared past the $46,000 mark early Friday, coinciding with the celebration of the Chinese New Year, which ushers in the ‘Year of the Dragon’—a symbol of luck and prosperity in the Chinese Zodiac. This period has historically been favorable for Bitcoin, with the cryptocurrency typically experiencing gains around the festive season.
The easing of selling pressures from exchange-traded fund (ETF) holders and miners has contributed to the recent uptick in Bitcoin’s price, signaling a resurgence in demand for the digital asset. The CoinDesk 20 Index (CD20), which tracks the performance of the top cryptocurrencies, also reflected this positive trend with an increase of over 2%.
Bitcoin’s ascent to a one-month high aligns with the largest festivities in East Asia, where the ‘Year of the Dragon’ is celebrated for its auspicious implications. The Mandarin pronunciation of ‘dragon’ resembles the term ‘long’, adding a layer of memetic appeal among cryptocurrency traders and enthusiasts.
According to a forecast by 10X Research, Bitcoin’s value could potentially climb to $48,000 in the near term, spurred by the historical pattern of gains during the Chinese New Year. The prediction anticipates an increase of at least 11%, supported by data indicating a nearly 15% rise in Bitcoin’s price over the last two weeks. This rebound helps mitigate the losses following the anticipation and subsequent downturn after the launch of several Bitcoin ETFs.
These ETFs have managed to absorb over a billion dollars in Bitcoin selling pressure in recent weeks, underscoring a strong market demand. On-chain analytics from CryptoQuant also observed a slowdown in Bitcoin transfers from miner wallets, suggesting a reduction in selling activities.
Market analysts, including Alex Kuptsikevich of FxPro, highlighted Bitcoin’s recovery above its 50-day moving average as a confirmation of a bullish trend, alleviating concerns of a further sell-off. The overall crypto market is showing signs of strength, setting the stage for potential new highs after a prolonged period of consolidation.
As the S&P500 and Nasdaq-100 indices reach all-time highs, Bitcoin’s performance and the broader crypto market’s resilience indicate a robust start to the ‘Year of the Dragon’, with investors and traders looking forward to a prosperous and bullish year ahead.
