Bitcoin and the CoinDesk 20 experienced significant gains in the Year of the Dragon. What are the prospects for the Year of the Snake?

As we step into the Year of the Snake, it’s time to reflect on how the crypto market performed in the Year of the Dragon.

With the Lunar New Year approaching, East Asia is preparing for the Year of the Snake. As the calendar turns, it’s a fitting moment to review the performance of Bitcoin (BTC) and the CoinDesk 20 (CD20), which tracks the largest digital assets, in the past year.

Every year, the Hong Kong-based brokerage CLSA takes a unique approach to predicting market trends, drawing insights from the lunar cycle. While their predictions are typically applied to traditional markets, the same framework has increasingly been relevant to crypto markets.

Looking back at the Year of the Dragon, CLSA’s predictions turned out to be largely accurate. Bitcoin saw a remarkable 137% increase, and the CoinDesk 20 grew by 128%, in large part due to U.S. President Donald Trump’s election. This aligns with the predictions of increased volatility followed by a rally in the second half of the year.

However, not all predictions came to fruition. Ether (ETH), for example, didn’t see the massive boost many expected from the potential launch of Ether exchange-traded funds (ETFs) and the Dencun upgrade. Although ETH still grew by 35%, it lagged behind the performance of other major cryptocurrencies.

Now, as the Year of the Snake begins, CLSA is forecasting a year of unpredictable shifts in the market. The start of the year may bring cautious optimism, with modest liquidity-driven gains, similar to the Rough Green Snake seeking a vantage point.

However, early spring may introduce volatility, akin to the Garter Snake testing its boundaries. By mid-year, the fiery energy of the Brown Tree Snake could drive a surge in the markets, lifting them to new heights. As the year progresses, stagnation may settle in during the summer months, followed by some minor setbacks in the autumn. But by the end of the year, CLSA predicts a renewed momentum, with crypto markets poised for a steady rise.

Of course, CLSA advises investors to seek professional advice and not rely solely on astrological predictions. While the lunar cycles can offer some insights, they should not be considered a substitute for sound financial guidance.