The Year of the Dragon saw Bitcoin and the CoinDesk 20 thrive. What lies ahead in the Year of the Snake?

As the Year of the Snake begins, it’s time to consider how the stars may influence the crypto market.

With East Asia preparing to celebrate the Lunar New Year and enter the Year of the Snake, it’s an ideal moment to reflect on bitcoin (BTC) and the performance of the CoinDesk 20 (CD20) during the previous Year of the Dragon.

Every year, Hong Kong-based brokerage CLSA forecasts the market’s direction based on the lunar cycle. These forecasts, though designed for traditional markets, have proven to be just as insightful for crypto.

Looking back at last year, the predictions were impressively accurate. Bitcoin saw a significant 137% increase, and the CoinDesk 20 (CD20), which tracks the largest digital assets, gained 128%. This surge was largely driven by the election of U.S. President Donald Trump, which aligned with the predicted mid-year volatility and subsequent rally.

However, the prediction for ether (ETH) fell short. Analysts had anticipated a stronger performance for ether, driven by expectations for ether exchange-traded funds (ETFs) and the Dencun upgrade to Ethereum’s protocol. But ETH only saw a 35% increase, underperforming compared to the overall market.

Looking ahead to the Year of the Snake, CLSA expects a year filled with unpredictability. Early in the year, they foresee a cautious but optimistic start, akin to the Rough Green Snake seeking higher ground.

As the year progresses, there may be some volatility, similar to a Garter Snake testing its boundaries, with potential declines in early spring. However, by mid-year, the Brown Tree Snake’s fiery energy could signal a significant market surge, pushing assets to new highs.

While summer could see some stagnation, CLSA predicts a strong finish for the year, with autumn bringing minor setbacks and the year ending with a steady rise in market momentum.

Despite these star-driven forecasts, CLSA reminds investors to seek professional financial advice rather than relying solely on celestial predictions. The market outlook provided by CLSA is intended to offer insight but does not replace formal research.