The Lunar Chinese New Year Effects On the Markets

One of the biggest market share holders is China. The Chinese investors are very serious about their investments so much so that they have decided to fund companies from their own lands and move their foreign investments into their local companies. Of course there are lessons to learn here such as ownership is everything, while the world is chasing control, the Chinese are about the ownership game. Most of the big decentralised crypto exchanges are Asian owned, if not then there are big Asian shareholders on board, much more lessons to be learned here.

Keeping a close eye to these Asian investors you'd learn that they rarely lose at any time. Its a winning game with them always even as matures learning the traits of the game it's always about reason for gains. If there is no reason for gains then that time is better spend sharpening the mind with games, talks or books. Everything has reason behind it, not "just for fun" there's concrete reason for every article written,every conversation had, all the trades traded, all news headlines read and all the hours put into sleep. All has to fall within reason.

有道理吗？ "Yo-u dao-li-ma"? Its a question of confidence for resonance and reason in whatever endeavours at hand.

The Chinese work ethic is of a whole different drive, it's as if they are not from this world. They work none stop because they see and feel reason in all the work put in to bring forth the much needed numbers. They would work all year long away from their families. Working diligently so that in the week of the Chinese lunar new year, which falls on the 12th of February this year, they get to go home to their families. The whole week most businesses shut down and only the very basic needs would still be operational, most of the big cities becomes ghost cities as everyone went back to their homes to spend the time with family as this is the only time of the year they get to do so. The city centers would mostly only have foreigners who study there, it's clear during the Chinese New year to see that the has been a huge reduction of numbers.

What does this have to do with the markets?

Leading towards the Chinese New year, most investors and traders start to cash out. The obvious reason behind this is so that they have the money to buy gifts to take with to their homes for the new year. The Chinese people have huge respect for the new year, other holidays don't get much time off of work but the new year is a different and much more lived holiday. Red envelopes are given all over the place, especially from the older generation to the younger generations. Red packets filled with mostly hundreds of ¥uan notes. Its a really warm festive season during which the market experiences some dips as observed in 2018, a dip of +37%, the dip has also been observed in the other years but 2018 was the worst.

These observations were carried out by contrasting data from exchanges with most Chinese clients such as OKEX, binance, and most recently KuCoin. These dips last for about 14 days and almost right after as the people get back to work there's a correction. This indicates that they do come to reinvest the money received as red envelope gifts. Some including new year resolution investments.

The question remains: will it be the same this year around? Possibilities are there that it might play out the same way as before but with the way things have become setup because of the covid Pandemic scam, there might be no movements back home due to preventative measures put in place to protect the citizens of the people's Republic of China from infecting each other. In the case of tightened regulations, the Chinese people will still be able to use their social media platforms like WeChat to send the red envelopes filled with money although it won't be the same because the worth of red envelopes online (ie in the phone or computer/tablet) has slightly less value than the red envelopes given by hand. This is for two reasons one is that the physical red envelopes usually has much more than a few ¥uans, normally a hundred or a few hundreds while the digital red envelopes usually carry much less,needing about 3-5 to reach the equivalent of the physical red envelopes. Either way the Chinese people are full of innovations and they probably already have a different game plan for however they would spend their lunar new year. They will make sure it's the best time of the year despite the pandemic scam.

Conclusion

I'm no financial adviser though it's be reasonable to observe the price fluctuations in the markets wether it's the bitcoin, bitcoin cash or stocks, Chinese precense is very strong in all markets and they love their new year. They normally cash out during the preparation of the new year to have money for gifts then they gift that money to their family and friends, their family and friend return that money to the markets. Its a beautiful cycles that's a reason to not panic incase of the dip but rather to buy the dip if it occurs. If the dip goes deeper than you can handle, maybe you should be in it for now. The markets can get choppy during this time please take care.

Let's prepare to celebrate the Chinese New year too. It is according to the stars, the perfect time of the stars for the new year and this year is the year of the iron ox, the bull so maybe there won't be any dips this time around maybe a riddle of bull runs all over the place. Do your own research and jump to your own conclusions so you reap your own consequences. I wish you well!

Yours

Hermitworldwide

Love and light

Bless up!