Does a 9% return on investment sound appealing?
According to a recent analysis from digital assets financial services platform Matrixport, this is exactly what the Chinese New Year has in store for Bitcoin investors during the past eight years.
“Buying bitcoin at the end of the first day of the Chinese New Year and selling it 10 trading days later would have yielded +9% on average,” Markus Thielen, head of research at Matrixport, wrote in a note.
The ten-day trading period following the Lunar New Year in 2017 was the most profitable in the previous eight years, with 15% gains throughout the festive period, followed by 14% in 2021 and 13% in 2016.
“The combined average Bitcoin return for the best time is around 15-19 days, as prices tended to increase by +12% when purchased on the first day of Chinese New Year and topped out around day 15-19,” Thielen continued.
The bullish new year for Bitcoin
Following the upheaval that the crypto markets witnessed in 2022, Bitcoin has beaten the odds so far in January, with the price of the world’s largest cryptocurrency rising 38% since the start of the year.
BTC, which was trading at $16,520 on January 1, reached $23,282 on Saturday and is presently trading around $22,900, according to CoinGecko.
If the Matrixport researcher’s pattern holds, the price of Bitcoin might hit $25,000 by February 1 (based on the 24-hour high of $22,948 as of today).
It remains to be seen whether this scenario plays out in reality; however, some analysts have previously warned of a possible bull trap that could entice naïve traders while discussing the current advance.
Meanwhile, the latest CoinShares data shows that investors were quite cautious last week when it came to Bitcoin investment products, with short positions dominating U.S. fund inflows by a wide margin.
The author’s thoughts and comments are for informative purposes only and do not constitute financial, investment, or other advice.
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