An average return on investment of 9% sounds quite attractive.
According to Matrixport, which is a digital assets financial services platform, this is the exact return that the Chinese New Year has been issuing to Bitcoin investors for the previous eight years.
Matrixport’s head of research, Markus Thielen, said that investors would have generated a 9% return after purchasing Bitcoin at the start of the Chinese New Year and then selling it after 10 trading days.
He said that they had managed to make positive returns for the last eight years i.e. from 2015 to 2022. Thielen said that this means that a 9% profit could also be generated this year.
This means there is a chance that investors who purchased Bitcoin on January 22nd would have a 9% profit when they exit the position on February 1st, Wednesday.
Thielen said that the impact of China on Bitcoin has been a major one for several years. He added that people talk when they get together.
After the Lunar New Year of 2017, the last eight years have seen the ten-day trading period generate considerable profits.
The festive period saw gains of 15%, while they had been 13% and 14% in 2016 and 2021, respectively.
Thielen said that the best timing for the average return on Bitcoin is about 15 to 19 days, as there tends to be a 12% rally when it is purchased at the start of the Chinese New Year and hits its peak between 15 to 19 days.
In 2022, there had been a significant amount of turmoil in the crypto markets, but Bitcoin has managed to defy all odds in January until now.
Since the start of the year, the price of the leading crypto in terms of market capitalization has recorded gains of 30%.
On January 1st, Bitcoin had been trading at a value of $16,520, but it reached $23,282 on January 21st, and data on CoinGecko showed its price had reached $22,900.
If the pattern that the research at Matrixport has outlined continues to play out, it would mean that the price of Bitcoin would reach a value of $25,000 on Wednesday, February 1st.
The price of Bitcoin is currently trading at a value of $22,948. However, it remains to be seen if the scenario mentioned above will actually happen in reality or not.
Some experts have warned in light of the current rally that there could be a bull trap that could draw the attention of inexperienced traders.
Meanwhile, the latest report from CoinShares has shown that investors had taken a very cautious approach last week in terms of Bitcoin investment products.
This is due to the fact that short positions had dominated US fund inflows by a significant margin. The rally has been quite surprising, given the problems that have surfaced in the crypto space.
There has also been talking about regulating the crypto market in light of the recent collapses.