September 24, 2023

Bitcoin buying and selling job surges right through US marketplace hours, analysis displays

Research findings by K33, a digital assets platform, show a pattern in bitcoin trading, with increased activity during US market hours compared to Asian and European sessions. 

US market power 

Despite growing concerns about regulatory uncertainties in the United States, with various crypto market participants currently locked in legal battles with the Securities and Exchange Commission (SEC), a new study by K33 shows, the country remains a force to reckon with when it comes to bitcoin trading.

Per the latest research findings, the world’s flagship cryptocurrency has shown a rise in trading activity during U.S. market hours in recent weeks.

According to the researchers, U.S. market hours have become the strongest for the price of BTC since the market bottomed in November 2022, following a challenging period from mid-February to mid-June. 

Bitcoin’s year-to-date climb stands at 62%, with a 13% increase over the last 30 days and a 1.5% rise in the weekly timeframe, per data from Blockworks Research.

Contrasting trading activity across regions

Bitcoin’s behavior during U.S. hours contrasts with the relatively stable trading activity witnessed during Asian and European sessions. Since November 2022, bitcoin has seen more significant gains of 30% during US hours, compared to 21% in Asia and 17% in Europe. 

This disparity indicates that the asset’s recent surge is primarily driven by renewed interest, particularly following BlackRock’s spot bitcoin ETF application last month.

Other major U.S.-based financial services firms, including WisdomTree, Valkyrie, and Fidelity Investments, submitting spot ETF applications have also contributed to the prevailing optimism.

Glassnode, a blockchain analytics firm, has revealed regular net outflows of bitcoin from U.S.-based exchanges such as Coinbase, Kraken, and Gemini, indicating increased accumulation or neutrality among U.S. investors. 

Furthermore, bitcoin’s correlation with U.S. asset indices like Nasdaq and the S&P 500 has turned negative for the first time since January 2021. This suggests that U.S. traders invest in BTC for reasons specific to the cryptocurrency rather than merely following broader market trends.

Macroeconomic factors at play

Macro factors in the lead-up to the quarter-end have been mixed, with expectations of higher interest rates and a potentially longer hiking cycle for the U.S. dollar reflected in the repricing of short-term bond yields. 

The stronger U.S. dollar relative to other currencies, including the struggling Japanese yen, has partially offset the momentum in digital assets. The recent rally of approximately 1.2% in the dollar index (DXY) over the past seven days highlights this trend.

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