In recent years, there has been a clear pattern in the crypto market that is worth noting—each year, a rally often begins in early January. There are actually very practical reasons behind this.

Chinese New Year usually falls between mid-February and March, during which the number of people on holiday in China peaks, and the online activity in the crypto community also significantly increases. This means more retail investors are entering the market, and both market participation and enthusiasm are on the rise. Historical data shows that almost every year, there are noticeable market fluctuations during this period.

Interestingly, this rally usually does not skyrocket all at once. Why? It’s simple—the upward potential in this cycle is inherently limited. The slow rise actually extends the duration, bringing more retail investors in and convincing them that there is still room for growth. By around the end of January, many people are already caught at the high points, but they don’t realize that the market has already quietly shifted into a deep bear phase.

Looking at the performance of mainstream cryptocurrencies like Ethereum, Bitcoin, and Solana, this pattern repeats year after year. Understanding this cycle may help you make more rational decisions at critical moments.