History of China gave us the Great wall and the “Art of war”. To the question of cryptocurrencies China also came up in a big way — even in 2017, the country banned online trade coins. However, this does not prevent local investors to exchange coins on exchanges because the prohibition does not apply to peer-to-peer and OTC trading.
The upcoming Chinese New year may be another reason for the fall of Bitcoin. The celebration in the most populous country in the world would entail the withdrawal of a huge number of bitcoins in Fiat currency and the potential collapse of the market. According to preliminary estimates, in the coming couple of weeks China will leave tens of millions of citizens to spend their new year vacation abroad.
The bear New year
The first celebration began on January 28, however the official New year in China begins on 5 February. Various national festivals will be held until 19 February.
How all this will affect trading Bitcoin? Despite the restrictions, millions of Chinese captainvalor use VPN and make a significant proportion of liquidity in the auction. Even the largest crypto currency exchange Binance, which had previously been registered in China, left the country to continue their business.
Perhaps the fall of Bitcoin 27 January was partly connected with the Chinese New year. We will remind, a week ago the main cryptocurrency was trading above $ 3,500, but 24 hours later its value drastically fell to a support line in the area of $ 3349.
Let’s hope the Chinese are not withdraw too much money from the capitalization of the cryptocurrency market. February was almost always a positive month for prices of Bitcoin, maybe this time the trend will remain the same. After the end of the festivities, you can also expect the growth of altcoins, which are considered the best among local investors.