Cryptocurrency is in its golden era now, multiple factors incite the growth of cryptocurrencies. We have already seen major cryptocurrencies like Bitcoin showing enhanced market performances and trading at their apex value. The latest factor that probably enhance Bitcoin’s price and market performance will be the Lunar New Year. The experts in the cryptocurrency landscape expect that BTC could trigger a 20 to 80% increase in its value.
Matrixport, a well-known blockchain-based platform that offers basic crypto financial services like trading, investing, lending, etc stated that Bitcoin had delivered positive returns during the Chinese New Year(Lunar New Year) in 11 of the past 12 years, resulting in statistically impressive 83% success rate for generating gains during this period. The entire crypto arena expects BTC to perform well this year as well. This article will discuss how Lunar New Year boosts Bitcoin and crypto trading.
What is the Lunar New Year?
The Lunar calendar is based on the moon and its cycle, Lunar New Year is the beginning of the Lunar calendar. The date of the Lunar New Year will be different every year, but it is generally in January or February. Lunar New Year is commonly celebrated in China and other Asian countries like Vietnam, Singapore, and Korea. The event begins with the first new moon of the Lunar calendar and ends on the first full moon.
Lunar New Year is more like a family celebration. New Year’s Eve and Day are commonly reserved for family celebrations like religious rituals and greeting the elders and ancestors. The younger generations of Asian families will greet their parents and grandparents and wish them good for the upcoming year. Older family members give younger ones cash presents contained in small red packets, the financial implications of the Lunar New Year like this are rooted in its foundation, they believe the new year will bring them prosperity. Countries like China and Vietnam believe red is a lucky color which is why they use red envelopes to give presents.
How does the Lunar New Year Affect the Crypto Market?
People often wonder how a cultural event like the Lunar New Year affects the crypto market and enhances the price growth of cryptocurrencies like Bitcoin. Let us look at why Bitcoin shines during Lunar New Year.
Enhanced and improved market activity in Asia
Lunar New Year is a major cultural event in Asian countries so a good amount of global crypto trading activities occur during this time. Investors and traders shift their focus to Bitcoin during the Lunar New Year holidays, which will shoot up the demand for currencies like BTC and eventually increase its value.
Psychological factors
Lunar New Year is all about new beginnings, so people become optimistic and actively engage in crypto markets to reap increased financial returns and profits.
Exclusive campaigns organized by the exchanges
Major cryptocurrency exchanges organize exclusive events for the users. These events will attract more users and increase user engagement. This is a major factor that incites the growth of the market activity and price during the time. Exchanges like Binance and Gate.io are Asian-based, so they will conduct exclusive events for global users which will incite the total activity of the crypto market. The newly launched Word of the Day (WOTD) by Binance and the Red Packet campaign by Gate.io are two major exclusive campaigns available these days.
Bitcoin in Lunar New Year
Bitcoin was able to maintain an impressive track record in the previous Lunar New Year holidays. The latest reports show that Bitcoin managed to gain and enhance its value in 11 of the last 12 Lunar New Year. The Lunar Year of 2025 began on January 29 and the cryptocurrency experts opine BTC could continue its winning streak this year as well. Matrixport reports that BTC usually performs well during the 20-day period near the Lunar New Year, this year would not be an exception.
Matrixport commented that, as a network-driven currency, Bitcoin’s price growth is fueled by the expansion of its user base, explaining that the more people learn about and buy into Bitcoin, the faster its price can rise. They noted that few events rival the impact of the Chinese New Year in driving this network effect, making it a uniquely significant catalyst in Bitcoin’s seasonal performance.
According to their latest research, Bitcoin Surged 8.4% in 2024 after the Lunar New Year. in 2022 it was 13.2% and BTC showed over 20% surge in 2021. Experts and crypto analysts have been tracking the performance of BTC in the Lunar New Year period and they concluded that increased market liquidity and investor optimism during the holiday period are the primary driving forces of this unparalleled run of BTC in the Lunar New Year holidays.
Performance of BTC in Lunar New Year (2015 -2024)
Let us take a look at the recent performance of BTC in the past 10 Lunar New Year seasons. The history of Bitcoin prices during the Chinese New Year season is tabulated below. The gains mentioned in this table are recorded after 10 days of the new year day.
| Year | Date | Gains After 10 Days |
|---|---|---|
| 2015 | February 19 | 11% |
| 2016 | February 8 | 9% |
| 2017 | January 28 | 11% |
| 2018 | February 16 | 7% |
| 2019 | February 5 | 3% |
| 2020 | January 25 | 10.11% |
| 2021 | February 12 | 20.18% |
| 2022 | February 1 | 13.20% |
| 2023 | January 22 | 2.4% |
| 2024 | February 10 | 8.4% |
The price gain of BTC in 2025 after the Lunar New Year is a sensational discussion in the cryptocurrency arena. Cryptocurrency experts and analysts are tirelessly working to track the data and draw a conclusion regarding the performance of BTC during this Chinese New Year season.
Traders need to keep an eye on the price movement of BTC in the days leading up to and during the Chinese New Year holiday. The price gains of Bitcoin are usually concentrated within the 20-day period. They need to focus on the trading volume of BTC as well, increased trading volume due to the increased activities in the Asian markets could provide a bullish signal.
The Bottom Line
Paying attention to global economic announcements like macroeconomic news, inflation reports, and regulatory updates might help traders cope with the latest trends. Bitcoin is expected to follow the positive trends this year as well, we can only know the details once the holiday is over and data related to it are officially released. Experts believe that a significant gain can be expected in the 2025 Lunar New Year season.
