Traders look forward to a “lucky year of the Dragon”—Bitcoin remains flat for now | CoinDesk JAPAN

On the last business day before East Asia’s Lunar New Year holiday, Bitcoin (BTC) remained flat above $42,000, while the CoinDesk 20 Index (CD20) was trading at 1,643, according to data from CoinDesk Indices. It is down 0.75%.

Over the next few days, East Asia will celebrate the beginning of the Year of the Dragon. The dragon, or dragon, is considered the luckiest and most prosperous animal in the zodiac.

In a January 2023 note, Hong Kong securities firm CLSA predicted market volatility in 2023. He attributed the positive outlook to the Year of the Rabbit, and advised investors to proceed with caution. And indeed, the market has “jumped back” from its dismal performance in 2022, with Bitcoin up about 94% and Ethereum (ETH) 47% in one year.

(CoinDesk Indices)

According to an analysis by CoinDesk Indices, the CoinDesk Market Index (CMI), which measures the overall performance of the crypto asset market, outperformed the S&P 500 by a factor of five, mainly due to Bitcoin’s outperformance.

Ethereum has underperformed throughout 2023, according to market data, but Daniel Wang, co-founder and CEO of Taiko, which produces zkEVM, a type of zero-knowledge proof (ZK) rollup, said: is excited about the potential for Ethereum’s price performance in 2024 in this “auspicious year filled with positive energy.”

“The Year of the Dragon is a year that opens new doors for Ethereum, especially with the expected impact on ETFs,” he said in an interview with CoinDesk. “Ethereum is on track to lower gas prices and speed up transactions with the long-awaited digital upgrade.”

Lucy Hu, senior trader at Metalpha, said the halving of Bitcoin and calming inflation looks promising for the price.

“Currently, the crypto asset (virtual currency) market is suffering from the effects of “selling on the news,” but inflation is currently under control and the year of the Dragon will be the best, as the Bitcoin halving event will occur in 2024. “This is shaping up to be a year of performance. Market confidence,” she wrote in a note. She hopes “Dragon’s fiery spirit will take the market to unprecedented heights.”

Regarding the traditional financial industry, CLSA said in a recent report that it expects the city’s stock market to regain vigor in the second half of this year.

However, some fluctuations are expected in the market. “Traversing this market on the back of a dragon is by no means a smooth experience,” CLSA analysts wrote. “A roller coaster’s rails are fixed to the ground, but a dragon’s is not.”

CLSA also urges people to seek professional advice, not stars, before investing.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: CoinDesk Indices
｜Original text: Bitcoin Flat as Traders Look Forward to the ‘Year of the Dragon’