As the Year of the Snake unfolds, it’s a great moment to reflect on how the crypto market performed in the Year of the Dragon.
With the Lunar New Year on the horizon, East Asia is gearing up for the Year of the Snake. It’s the perfect time to look back on Bitcoin (BTC) and the performance of the CoinDesk 20 (CD20) in the previous year.
Each year, Hong Kong-based CLSA, a prominent brokerage firm, taps into the lunar cycle to forecast market trends. Although this approach is traditionally used for traditional markets, its insights are becoming increasingly relevant to the crypto world as well.
Looking at 2024, CLSA’s predictions were largely on target. Bitcoin saw a massive 137% increase, and the CoinDesk 20 surged 128%, driven mainly by U.S. President Donald Trump’s election victory. This rally aligns with predictions of a volatile start to the year followed by a strong upward trend in the second half.
Yet, there were some discrepancies, especially with Ethereum (ETH). Despite predictions surrounding ETH’s potential, such as the anticipated launch of Ethereum exchange-traded funds (ETFs) and the Dencun upgrade, ETH only increased by 35%. It didn’t manage to keep pace with other cryptocurrencies, leaving many of the bullish forecasts unfulfilled.
As we move into the Year of the Snake, CLSA is predicting a year of unpredictable market shifts. The year could start with moderate gains, mirroring the Rough Green Snake’s cautious ascent as it surveys its surroundings.
The spring months, however, might see volatility, akin to the Garter Snake testing its environment. Mid-year, the Brown Tree Snake’s fiery energy could spark a major surge in the market, bringing renewed excitement and upward momentum.
In the summer, markets might experience some stagnation, and autumn could bring minor setbacks. However, as the year ends, crypto markets are expected to show renewed strength and a steady rise, indicating resilience in the face of volatility.
CLSA also reminds readers to consult with professional advisors rather than relying solely on celestial predictions. While the lunar cycle offers an interesting lens, it shouldn’t replace informed financial advice when it comes to making investment decisions.
