When we think about Bitcoin, an independent actor from virtual market comes to our mind. Bitcoin is among the few elements that were not affected by social economic changes or other manipulators. However, at the beginning of 2018, the virtual coin started to fluctuate in a negative way for mysterious reasons.
Some experts say that we should blame the Chinese and the new year they are preparing to enter. The unexpected drop of Bitcoin was due to the fact that the Chinese New Year is a time when people spend a lot of money on holidays, presents and other things associated to this colorful event. The connection between these activities and cryptocurrency is that China is a country were the population massively invested in Bitcoin.
Why the Bitcoin suddenly dropped
Knowing that the Chinese invested a lot in this area, we can understand why the sudden drop is associated with the Chinese New Year. In Oriental culture, the period is also called the Lunar New Year, so it’s important for those who believe that the Moon influences their lives. Considering that, it is understandable why people who celebrate it exchange their cryptocurrency into real money. It is quite expensive to plan a holiday for starting the Lunar New Year in the right place.
Although the holiday will take place on the 16th of February, people start spending money since the beginning of January. This period is when the cryptocurrency started to drop, after a long blooming period.
What influences Bitcoin’s evolution
Bitcoin is one of the most fluctuating actors from the stock market. Every economical or political movement influences its’ Evolution. Even if the latest tendencies of 2017 were favorable, the beginning of 2018 seriously affected all progress made during previous years.
What will be the follow-up
As we have been proved, January is not a good month to buy cryptocurrency. Also, this month will be followed by an unpleasant period for investors. If you decide to try this type of investment, start with a rigorous research on the matter.
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