Longhash’s report on February 15 reveals that last week’s celebrated Lunar New Year in China had no significant effect on cryptocurrency trading volume. It is believed that during the holiday, the Chinese may be more likely to exchange their cryptocurrencies for fiat currency to make purchases.
Trading Volume of Five Cryptocurrency Exchanges Compared
According to the media platform’s report, the trading volume of five cryptocurrency exchanges was culled from Coinmarketcap. These are Binance, OKEX, Huobi, Coinbase, and Bitfinex. On combining the trading volume of the five exchanges, the data showed that there is no significant change in trades in comparison with the weeks before the celebration.
The Spring Festival as it is also called began from February 4 to February 10, and the combined trading volume of these exchanges was $10.567 billion. From January 28 to February 3, a week before the festival, it was $10.497 billion. Two weeks before the celebration, the volume was $9.807 billion.
Insignificant Increase in Trading Volume Before Chinese Festival
Consequently, a week and two weeks before the celebration where it is expected for users to convert their funds, there was only a 0.67% and 7.75% increment in trades, respectively. This negligible increase could not also be attributed to the festival since a lot of factors could have caused it.
Longhash has, however, noted that this data is not the only factor that can determine people’s level of activity with cryptocurrencies during the celebration. The reason is, China banned cryptocurrency exchanges in 2017, and as such, most of its citizens have come to rely on OTC trading desks to exchange virtual currencies for fiat.
Christmas Celebration is Also Less Impactful on Trading Volume
Asides from the Spring Festival, comparisons were also made between the trading volume from days before Christmas and the New Year. The platform’s aim was to ascertain if generally, celebrations in different regions around the globe could impact on the trade of virtual assets. They concluded that the result from China is very similar to those obtained during the aforelisted celebrations.
In the case of Christmas, the total transaction volume of the selected exchanges between December 24 to December 31, 2018, was $20.822 billion. While the volume was 3.57% lower than that of the week before December 24, it was 98.81% higher from two weeks before. Likewise, January 1 to January 7 with a volume of $13.722 billion recorded a 34.10% decrement in trades in comparison to a week before that.
While these celebrations were unable to impact on the trading volume of assets, the low volatility of Bitcoin was able to. BTCNN on February 6 reported of Diar’s report which noted that the Bitcoin trading volume of Binance, Coinbase, OKEx, and other exchanges had dropped due to this volatility.