Will China’s Golden Week Affect Bitcoin (BTC)?
Research by Binance shows that China’s week of celebrations may have a limited negative effect on BTC prices.
Bitcon (BTC) is still shaky, and now has to survive the pressures of China’s Golden Week, seven days of celebration beginning on October 1. Binance, in a special edition of price research, notes a small downward pressure at that time of the year.
This year, the share of Chinese trading has grown, boosted by the movement of Tether (USDT) to the most active exchanges, including OKEx and Binance. BTC had a shakedown recently, touching lows at around $7,800, before recovering to $8,301.83. The next few days will show if the Chinese celebrations lead to lowered activity.
In the past month, BTC trading volumes fell to under $15 billion’s equivalent in 24 hours, down from recent peak activity around $28 billion. The entire crypto market has slowed down, with growing skepticism about altcoins.
China’s Golden Week arrives just after the completion of a rather unpleasant month for the crypto market, where the luckiest assets remained flat. BTC posted its worst third-quarter results since 2014, sinking around 30% from peak prices in June. For that reason, after the increasing turbulence, the first week of October starts on a rather negative sentiment.
The Bitcoin fear and greed index inched up to 39 points, up from 38 points a day ago, better than the “extreme fear” a couple of weeks ago.
Bitcoin mining also slowed down in the past couple of days, though within its usual range of fluctuations. China remains one of the major areas of mining, trying to squeeze out the last 12.5BTC block rewards before the halving in 2020.
The hope is for a recovery once the Golden Week ends, as BTC prices are still seen as potentially breaking into a new yearly high. Usually, BTC makes most of its gains within days, and without clear indicators.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.