Bitcoin recorded its best performance for the month of January compared to seven years ago.

Bitcoin started the month at $7,208, according to data CoinMarketCap It ended the month yesterday at $9,395.

Ie earned more than 30%.

The last time Bitcoin did this well was in the first month of 2013, when it saw a 54.50% rise.

Looking back over the past years, Bitcoin’s January performance split evenly between ups and downs.

While 2013 was the currency’s biggest gain, 2015 saw the currency rate drop by 32% in one month, and in 2018, by 29%. But this year is different.

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In fact, the bitcoin price was well below its three-month high of $9,488 on November 4.

So what made the price go in that direction?

Earlier this month, Bitcoin watchers pointed to the sudden US strike against a prominent Iranian general and these analysts blamed the US-Iran dispute as the reason behind Bitcoin’s steady rally from the low of $6,597 recorded on December 17.

Within hours of the attack, the price of Bitcoin (along with oil prices) soared to $7,339.

Bitcoin’s price rally is now comparable to traditional assets such as oil and gold as prices rise during periods of uncertainty.

However, Bitcoin’s performance has been historical with unpredictability when it comes to similar geopolitical events.

Many crypto market followers — including Matty Greenspan of e-Toro and Matthew Graham of Sino Global Capital — believe that the price of the coin is growing because Iranians are buying bitcoin as political wrangling rises.

But within a week, the bitcoin price had lost its bullish momentum, as bitcoin watchers analyzed and attributed it to the Chinese New Year.

What is the effect of the Chinese New Year holiday on the price of Bitcoin?

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Historically, the price of bitcoin has often fallen around the beginning of the Chinese New Year as the process of price unloading and increased market volatility occurred.

The reason, according to some, lies in the “hongbao” tradition in which millions of red envelopes containing money are given as gifts to friends and families.

Bitcoin holders can theoretically exchange their bitcoins for cash on the occasion.

Such continuous selling may be sufficient to alter the dynamics of supply and demand so that supply exceeds demand, resulting in lower bitcoin prices as exchange volume decreases.

But the opposite was true.

During the period, there was no big sale as in previous years. Some suggested that the Corona virus had hampered people’s ability to spend time with family.

Another reason, and perhaps the most plausible reason for the bitcoin price rally in January, is the approaching date of the bitcoin split.

The Bitcoin split… an introduction and its importance to the crypto industry

The Bitcoin mining reward split this year is expected to be in May this year, as the Bitcoin mining reward will drop from the current 12.5 BTC to 6.25 BTC per block.

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Some believe that this reduction in the number of bitcoins being produced will cause the price of bitcoin to rise.

1/ There is a real possibility that the price of Bitcoin will not rise after the halving.

For the first time, there is a strong market for derivatives (futures, options) for bitcoin. Most companies looking to speculate on bitcoin will be trading a derivative, not an underlying.

– Melt-Dem (@Melt_Dem) December 24, 2019

It seems that the price of Bitcoin in January 2020 got off to a good start, so will Bitcoin continue its good performance until after the split?