Arthur Hayes, founder and CEO of BitMEX, has warned the crypto community that the Chinese New Year is approaching, predicting a significant drop in trading volume.

The BITMEX CEO tweet is causing an uproar in the crypto community:

We are only a day away from Chinese New Year, and the Year of the Rat is about to begin this weekend.

This was indicated only hours ago by BitMEX CEO Arthur Hayes, who stated this in his latest Twitter update.

Aside from simply announcing the change to the calendar, Hayes also warns that Bitcoin volatility is about to occur along with a significant drop in trading volumes.

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Of course, this is not entirely new and the crypto community experiences this same Bitcoin price volatility every year around this time.

January is a bad month for Bitcoin price performance, having averaged 5% losses over the past 10 years.

新年 快乐 The Year of the Rat begins this weekend. . time # bitcoin Variability and sizes of nose dive.

– Arthur Hayes (@CryptoHayes) January 23, 2020

Crypto and China:

As is well known, China has the largest population in the world.

Given that many of them are very interested in cryptocurrency – including people in and out of China itself – it is not surprising that their withdrawal from the crypto sector for a few days celebrating the New Year, has disastrous consequences.

This has already been seen in previous years, although the trading of cryptocurrencies is prohibited within China itself.

Its members are still using the circumvention of the trading ban in order to participate in the crypto space.

Does Chinese New Year Really Have an Impact on Bitcoin?

What you need to bear in mind is that most professional activities are greatly reduced when Chinese people celebrate the arrival of the New Year.

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There is also an expectation that Chinese investors will sell some of their bitcoins to cover the festive costs.

These are the main reasons why people think that this Chinese occasion affects the price of Bitcoin.

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The Chinese New Year will begin tomorrow, Saturday, January 25, and is likely to provide the answer to the question of whether or not it has any impact on the price of Bitcoin in the following days.

At the moment the price of Bitcoin is at $8,382, after declining by 2.36% in the past 24 hours.

In the past seven days, the bitcoin price broke through the $9,000 mark and reached a high of $9,150 before facing a sharp decline that stalled at the $8,600 support level.

However, this support was broken several hours ago and Bitcoin, just like the rest of the altcoins, is trading in the red.

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