The upcoming Chinese Lunar New Year on February 12 could indirectly impact bitcoin (BTC) price and drive sell-offs, according to analysts at Stack Funds. The Chinese New Year is one of the biggest holidays in the country usually associated with increased spending. Previously, the Chinese New Year celebrations have historically driven towards Bitcoin price declines. Chinese New Year to Drive Bitcoin Selling Pressures As per a recent report, analysts at the Singapore-based Stack Funds have revealed the upcoming market performances of Bitcoin with regard to the upcoming holidays. The investment firm’s head of research, Lennard Neo, is anticipating increased selling pressures in the short-term in response to the holiday. This might be due to the local miners increasingly offloading their funds during the holiday week. The country is already dominating the global Bitcoin mining pools with over 60% of mining pools. However, the analyst believes it to be a good entry opportunity for investors. Neo indicates that the miner position index (MPI) has seen a massive surge recently, indicating a subsequent pullback of Bitcoin’s price. Meanwhile, as of January 10, the MPI index has surged to its highest levels since 2019. Increased Volatility Over Coming Weeks According to Lennard Neo, such volatility is likely to persist in the coming weeks and will continue to add selling pressure to further Bitcoin corrections: “With upcoming Chinese New Year holidays, we expect this selling pressure to continue in the short-term, providing good entry opportunities for market participants. We also expect this volatility to persist in the coming weeks, adding pressure to further corrections for Bitcoin prices.” Meanwhile, Chinese over-the-counter (OTC) will also remain shut during the festival, which could further lead to higher market volatility. Bitcoin was roughly down by 12% and fell under the $30,000 range. Over the past 24 hours, the cryptocurrency reached as low as about $29,290. However, the leading cryptocurrency slowly climbed back up to over $31,900. It is currently trading around $31,400 at the time.
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