Bitcoin Hits $50,000 Milestone With the Help of Lunar New Year
- Trading volume has come down significantly from January
- Bitcoin historically has gone higher around Chinese New Year
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Bitcoin’s headline grabbing jump to $50,000 came as little surprise to traders noting a seasonality effect in a corner of the crypto market: The digital asset tends to move higher in light trading around the Lunar New Year.
The oldest cryptocurrency’s remarkable comeback to the highest levels in more than two years has been closely associated with the US approval of spot Bitcoin exchange-traded funds last month. But the frenzy attached to Bitcoin ETFs appears to have already waned, with the average daily trading volume in the crypto market falling to $113 billion so far this month, down from around $149 billion in January, according to crypto trading data firm CCData.