But with surprise, bitcoin price has not shown any sign of such drop with 3 or 4 days more to go for the Chinese new year. The bitcoin price rather kept flying higher and defying many previous and negative expectation, price is currently at $46,457 and with more bullish move on sight, this year may be different with the Chinese new year. This is around 7 months after halving too, things maybe different.
These are below some of the reasons attributed to why things may be different this time around:
INSTITUTIONAL TRADERS COMING IN This year’s market has been very different from the past years’ and we are seeing very limited impact from [Chinese] retail traders’ behaviors” such as cashing out, mining pool F2Pool’s co-founder, Shixing “Discus Fish” Mao, told CoinDesk. “The current market is driven by institutional money and it moves with the emotions of these Western institutions. We cannot simply come to any conclusions on [bitcoin’s] price’s trend based on retailers’ behaviors.
COVID-19 REMAIN'S A WILD CARD Even though the coronavirus pandemic is being treated as if it were well under control in China compared with most Western countries, a new number of cases in the past month has led the Chinese government to put more restrictions on traveling around the holiday time in the country.
CHINA'S CRACKDOWN ON OTC DESKS
China’s crackdown on the over-the-counter (OTC) service is another potential reason fewer people are cashing out ahead of New Year’s, said people who are familiar with the matter.
The Chinese new year sell off may not happen