Do you remember my article “A look back at how niches performed and where do they stand now“
I said this:
Normally it is said that after the Chinese New Year investments spike. Last year we didn’t see this spike though. Niches started recovering a little bit only after June.
But there is a major difference between last year and this year. Niches were already very high and they went on a downward spiral around Chinese New Year last time. This time they are around 50% discounted.
I have said Chinese niches are around 50% or more down and it can only go up.
I had a nice table to show you how much percentage the niches were down as of 01/01/17 since the peak in 2016. Inserting it here for your convenience.
|SI No.||Niches||Peak date||Peak price||Current date||Current Price||Percentage Difference|
Chinese New Year vacation ended first week of February and we started detecting increased activity from February 8th.
Stats from the homepage of DN.domains
The turnover has been increasing since then. At the time of writing, around 10 am in China, the turnover has already reached around 50% of recent days with just 1319 domains transacted indicating a massive turnover on the anvil today. The price for 4L.com chips have increased more than 100 dollars in the last 4 days.
One-year graph of 4L.com chips
Icing on the cake was Chinese government stepping up its control on the bitcoin exchanges in China. On February 9th, two of the major Chinese bitcoin exchanges stopped withdrawals of bitcoins for one month following government directive to curb money laundering. This would mean their investments are stuck there for a month. There were similar approaches from the government in the month of January as well. So essentially the Chinese might be re-realizing the domains are a safer asset.
Experts in our Chinese domains Whatsapp group have similar opinion. They say the stage is set, the conditions are right, and the domains are still at a discount. However, it is too premature to say anything at the present time. Usually a week or more of increased activity could turn the Chinese market upside down. Let’s continue to watch.
Do you know we have set up a price email alert for Chinese niches (beta)? The utility is available in the homepage.