Chinese New Year (Lunar New Year) has strong influence on cryptocurrency prices, with Bitcoin prices decreasing in the months leading up to the New Year. This article examines the trend and the possible reasons for why it happens. Chinese New Year is celebrated on a different day each year as it is based on the Lunar Calendar. In 2020 it starts on Saturday, 25 January and ends on Monday, 27 January. In 2021 the festival will start in Friday, 12 February.
*Data based on Bitcoin Prices on Coinbase. Pre-CNY Highs taken as average candle price up to 4 weeks before the New Year.
This period is a public holiday in China, as many employees travel back their home towns to celebrate with their families. With a population of 1.386 billion, this represents the largest short term migration in the world. All factories in China close during this period, with operations frozen for up to 2 weeks as logistics companies and suppliers slowly open up. Chinese New Year is also celebrated in other Asian countries such as Hong Kong, Singapore and Korea (Korean New Year).