BitMex CEO Arthur Hayes said that Chinese New Year will increase volatility while reducing Bitcoin volume

By Dorothy 01/23/20 7:00 PM

The co-founder and CEO of the cryptocurrency derivative platform BitMEX has made forecasts for the coming weekend. Co-Founder & CEO of BitMEX, Arthur Hayes, tweeted that the volatility and volume of bitcoin will be nosedive by the end of this week as the Chinese New Year approaches.

新年快乐 The year of the rat starts this weekend. Time for #Bitcoin volatility and volumes to nose dive.

— Arthur Hayes (@CryptoHayes) January 23, 2020

Hayes believes that Bitcoin transactions in China will decline at this time because traders will celebrate instead of trading. The Chinese calendar will change on January 25 and the world’s most populous country will celebrate the start of a new year. China’s holiday season could have a direct impact on the volatility and volume of bitcoin.

How does the Chinese New Year affect the price of Bitcoin?

This year, the Year of the Rat repeats in the Chinese calendar after a 12-year cycle. 2020 is the year of the rat, starting from January 25, 2020 and ending on February 11, 2021.

Some analysts and experts believe that the bitcoin price will collapse this weekend because the Chinese New Year is widely celebrated on January 25. So far, the bitcoin price has had a positive rally. The price of the leading cryptocurrency has started the year under $ 7,000 and has exceeded $ 9,000 in the past week.

Since everything about Bitcoin revolves around China, cryptocurrency experts and analysts believe that when a vacation of this nature is present, there is a high possibility that the price of Bitcoin will have a problem. A very common assumption is that Chinese investors, during the Chinese New Year, pull out their holdings and convert them into currencies, creating excessive selling pressure in the cryptocurrency market.

According to the impact of the Chinese New Year on Bitcoin prices, a prominent analyst, Alex Kruger does not expect the event to serve as a positive or negative catalyst.

Some think the Chinese New Year may impact $BTC negatively, as people sells bitcoin to purchase presents.

Chinese New Year starts with the 2nd new moon after the winter solstice. This year it falls on Jan/25.

Data indicates $BTC does not underperform preceding the Chinese NY ? pic.twitter.com/HSubtvss8c

— Alex Krüger (@krugermacro) January 17, 2020

Alex tweeted that:

“Some think the Chinese New Year may effect $ BTC negatively because many people sell bitcoin to purchase presents. Chinese New Year starts with the 2nd new moon after the winter solstice. This year it falls on Jan / 25. Data shows $ BTC does not underperform preceding the Chinese NY. ”