That marks the date the Chinese will celebrate their Chinese Lunar New Year.

The Lunar New Year is much more akin to our version of Christmas than just another day celebrating the turning of a year.

Many presents are bought, vacations are planned, and trips are taken.

Basically it becomes a massive spending holiday for the Chinese.

In 2016 alone, over $110 billion was spent around this time. This year well over $100 billion is projected to be spent again around this time.

Why is this important for the cryptocurrency markets?

Like it or not, Asia very much still has a strangle hold on cryptocurrency trading.

Don't believe me?

Just check the prices any time a negative headline comes out of South Korea, Japan, or China to see how important that region is for cryptocurrencies.

This holiday seems to have a major effect on cryptocurrency prices as evidenced by the charts over the past few years.

Check out the chart of bitcoin over the last 4 years in January:

Early 2015

Early 2016

Early 2017

Early 2018

Are you noticing any patterns here?

Traditionally January as been a terrible month to be a bitcoin investor. However, it has been a great time to be a bitcoin buyer.

In each case, after making lows in the middle of January prices rebounded a few weeks later, and ultimately went on to make new highs later that year.

Will this year turn out to be more of the same?

It's impossible to say for sure,  I'm betting on it.

Stay informed my friends.

Image Sources:

https://www.colourbox.com/vector/happy-chinese-new-year-2018-vector-27646096

https://cointelegraph.com/news/bitcoins-early-2018-woes-written-in-the-stars-and-moon

Follow me: @jrcornel