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Bitcoin's Trading Patterns Outside US Hours

Apr 5, 2024

Bitcoin has shown a pattern of gaining more value outside of traditional U.S. trading hours recently, which could provide an opportunity for traders. This is a shift from past years, where most gains were seen during U.S. trading hours. Research indicates that this new trend could allow traders to profit from small margins.

According to analysts, investors can benefit from this trend by buying Bitcoin before U.S. trading hours and selling shortly after. Recent data indicates that Bitcoin rose by 2.6% outside U.S. hours, in comparison to a 0.6% increase during U.S. hours. Similarly, a substantial portion of the gains in Bitcoin since the introduction of spot Bitcoin ETFs occurred outside of regular U.S. market hours.

The operating hours for U.S. trading are typically from 2:30 pm to 9 pm UTC, including major exchanges like the New York Stock Exchange (NYSE) and Nasdaq. Investors from various time zones often predict spikes in ETF inflows by purchasing Bitcoin before the market opens.

While U.S. investors take advantage of market discrepancies between the spot market and futures market, Asian investors historically did more selling during Asian market hours. With the introduction of spot Bitcoin ETFs, the dynamics of trading have shifted, allowing for potential profitability during non-U.S. trading hours.

Keep in mind that this article does not offer investment advice. It is essential for readers to conduct their own research before making any financial decisions.

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