10X Research: The Winning Secret of Bitcoin during Chinese New Year, with a success rate of 90% and a return rate of up to 10%

With the Lunar New Year approaching, Markus Thielen from 10X Research has released an interesting report. According to their statistics, buying Bitcoin three days before the Lunar New Year and selling it 10 days later has yielded an average return of 10%, with a success rate of 91% over the past eleven years, making a profit in ten out of eleven years.

Why Pay Attention to Chinese New Year?

There is a close relationship between China and Bitcoin development. In 2012, Jiang Xinyu, known as "Kitty Burner," conducted an ICO for Asicminer, initiating a large-scale Bitcoin mining movement in China, putting China in a leading position in producing Bitcoin mining equipment.

In 2013, after the Bitcoin documentary aired on CCTV and Baidu started offering Bitcoin payment services, the price of Bitcoin skyrocketed and became widely accepted in China. At one point, over 80% of Bitcoin trading volume occurred in China. Despite many domestic restrictions now, the price of Bitcoin still reacts to events and policy decisions in China.

Bitcoin Performance During Lunar New Year Holidays Over the Years

From historical analysis, if investors buy Bitcoin in the three days before the Lunar New Year and sell it in the ten days after, there is a 91% chance of making a profit in ten out of eleven years, with an average return of over 10%.

The only loss-making year was 2014, when Bitcoin had surged by 5,500% in 2013, and the People's Bank of China (PBC) began cutting off banks' connections to cryptocurrency exchanges.

Will BTC Repeat Its Bullish Trend This Year?

Thielen mentioned in the report that due to limited investment opportunities in China, real estate is considered an important investment tool, but with the recent downturn in the real estate industry and stock market crash, some people are viewing Bitcoin as a viable alternative.

Recent reports from China: China's reserve requirement cut providing liquidity, "Fanhua" reports bright signs, leading to a surge in 601 mid-cap stocks.

During the 2023 Spring Festival holiday, approximately 308 million people traveled domestically in China. Hundreds of millions of migrant workers also returned home at this time, and some family gatherings may discuss Bitcoin as the so-called "new form of currency."

He expects that following last year's 150% increase in Bitcoin, digital currencies may once again become a hot topic for many, and the Bitcoin price in the next two weeks may also reflect this.

This year's Lunar New Year will begin on 2/10, and we will have to wait and see if Bitcoin's trend can continue from previous situations!