As the Year of the Snake begins, it may be time to look to the stars for insights on the crypto market.
With East Asia gearing up for the Lunar New Year holiday and transitioning into the Year of the Snake, it’s a good moment to reflect on how bitcoin (BTC) and the CoinDesk 20 (CD20) performed during the Year of the Dragon.
Hong Kong-based brokerage CLSA has a tradition of predicting the market’s performance for the year ahead based on the lunar cycle. With some adjustments, this forecast has proven just as relevant for crypto as it is for traditional markets.
Looking back, the market predictions were spot-on. Bitcoin rose by 137%, and the CoinDesk 20 (CD20), an index tracking the largest digital assets, surged 128% in the past year. This crypto rally largely coincided with U.S. President Donald Trump’s election in November, aligning with predictions of volatility followed by a rally in the second half of the year.
The only area where forecasters were off was in their prediction for ether (ETH). Analysts expected ether’s performance to be driven by anticipated ether exchange-traded funds (ETFs) and the Dencun upgrade to the Ethereum protocol. However, ether only increased by 35% over the past year, lagging behind the broader market’s gains.
As we move into the Year of the Snake, CLSA predicts a year filled with twists and turns. The year begins with cautious optimism, with liquidity-driven gains reflecting the Rough Green Snake climbing to get a better view.
However, youthful volatility, much like a Garter Snake testing its limits, may cause temporary declines in early spring. By mid-year, the energy of the Brown Tree Snake could lead to a potential surge, lifting markets to levels not seen in some time.
While summer may bring stagnation, the stars indicate that autumn will see minor setbacks. The year is expected to finish strong, with renewed momentum and a steady rise in crypto, highlighting the industry’s resilience and adaptability in a volatile environment.
As always, CLSA cautions that these predictions, inspired by the stars, are not meant to replace professional investment advice and should not be taken as a formal research report.
