According to the new analysis, the Chinese New Year on February 12 could have an indirect impact on the price of Bitcoin (BTC) and trigger the sale in the market.
The current selling pressure on the bitcoin price may last in the short term as Asian miners are increasingly selling their savings ahead of the upcoming New Year’s holiday, according to a report by crypto investment firm Stack Funds dated January 28.
Lennard Neo, Head of Stack Funds Research, suggested that there was a lot of selling pressure from Chinese miners as more than 60 percent of global Bitcoin mining pools are located in China. The researcher noted that the Miner Position Index (MPI) has seen a huge increase recently, indicating a retracement in the bitcoin price. MPI saw its highest level in the last 8 years, according to Cointelegraph’s report.
Neo said that ongoing sales intersect with the upcoming New Year holiday, so the bottom price has yet to be seen:
“With the approach of the Chinese New Year, we expect this sales pressure to continue in the short term and provide good entry opportunities for market participants. […] We think this volatility will continue in the coming weeks and put more pressure on the Bitcoin price correction. ”
Bitcoin, which has increased 2 percent in the last 24 hours, is being traded at $ 31,473 as of the time of translation publication.