Despite the huge volatility of the prices in the crypto market, the optimistic predictions regarding the price of Bitcoin are still coming in.
After suffering a correction following last week’s race, at the moment of writing this article, BTC is trading in the green, and the coin is priced at $8,415.22.
Bitcoin’s volume, about to fall?
Arthur Hayes chief executive officer of the BTC and crypto derivatives exchange predicts that BTC’s volume is about to fall off a cliff.
He said that the Chinese New Year celebrations, which began the past Saturday, would be triggering a massive drop in the crypto trading volume.
Here’s Hayes’ tweet:
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
People don’t really agree with him, and they don’t seem to take this prediction too seriously.
Someone tweeted: “Its just people leaving your overloaded exchange sir, no need to be worry or even upset.”
Another Twitter user said that “That Chinese New year volatility. Been waiting for it since 2018,” while someone else posted: “That’s a strong buy signal right there, thanks.”
The Chinese regulators banned trading on local crypto exchanges back in 2017 but the country still plays an important role in the crypto markets.
On the other hand, it’s important to note that the outside exchanges such as Huobi and OKEx are still serving local customers and allowing Chinese traders to arrange deals over-the-counter.
The online publication the Daily Hodl brings up Alex Kruger who said that he expects the impact of the New Year to be minimal.
Here’s what Kruger posted: “Some think the Chinese New Year may impact $BTC negatively, as 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 indicates $BTC does not underperform preceding the Chinese NY.”
Bitcoin is expected to see a surge soon due to the halving that’s scheduled for May.