Since the December 2021 crash, bitcoin has seen multiple sell-offs. This has led to a decline in Bitcoin’s prices in recent months. Trade hours in a specific region can affect the magnitude of sell-off trends. It seems like macro pressure in the U.S. has been responsible.
U.S. traders drive sell-offs
Two months ago, the sell-offs have been particularly brutal and have caused a drop in year-to date values. The majority of sell-offs in the United States have occurred during daytime trade hours. The year-to date values in the United States during trading hours are compared to the European year–to-date value. This contrast shows where many sell-offs took place.
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Its year-to-date U.S. trading hour values are now in the negative. The European counterpart sees positive values of +16%, while it is currently at -32.55%. The fact that American traders have been responsible for most of the sell-offs over the last two month is clear. Comparatively, this is also true for Asian trading hours. These show a better year-to-date performance than those in the U.S.
BTC selling intensifies during U.S. trade hours| Source: Arcane Research
This can be attributed to the close correlation of bitcoin and the equity market over the past two weeks. Also, it is important to remember that not only American traders use the macro markets for assessing their bitcoin risk. Since traders in other regions also use the equity markets such as the NASDAQ and the S&P500 as a way to assess their risk appetite, they may also be dumping bitcoin during the U.S. trading hours.
Bitcoin Trading Hours
It has become evident that the U.S. market opens up to trading and there have been many sell-offs. The fact that digital assets tend to be cheaper in the early morning hours, while Asian and European markets open at 8 a.m. is a sign of this. The downtrends become apparent once the U.S. market opens for business.
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This puts bitcoin’s current weak point during the times when the American traders are active. This means that these trading hours can present buyers with a chance to purchase bitcoin and also allow them to take advantage of quick gains by making short-term trades.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
But it’s important to keep in mind that things can change. Sometimes, sell-offs stop as abruptly as they start. Short-term play options that are based on the U.S. trading hours may be affected by a shift in the trend.
In the wee hours of Wednesday, bitcoin’s price had risen above $30,000 at the time that this was published. The price of bitcoin could drop to below $30,000. If this sell-off continues, it may happen before the end of the day.
Featured image taken from Bitcoinist. Also charts from Arcane Research and TradingView.com.
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