The Rise of Bitcoin Trading During US Market Hours
Bitcoin trading during US market hours has seen a significant increase in volume, accounting for 46% of the total trading volume from January to April this year. This surge is attributed to the introduction of spot-Bitcoin exchange-traded funds (ETFs) in January.
US Dominates Bitcoin Trading, Asia Falls Behind
A report from Kaiko Research reveals that Bitcoin trading volume peaks at the beginning and end of US trading hours, aligning with the calculation of ETF values at the close of US stock exchanges each weekday. Furthermore, Thursdays witness the highest trading activity during US hours, contributing nearly 15% to the daily volume.
- Trading volume during US hours has rebounded to 2022 levels.
- Asian trading hours show significantly lower volume, indicating the growing influence of US market activities on Bitcoin dynamics.
The Impact of ETFs on Bitcoin Performance
Toby Winterflood, Chief Product Officer of CCData, notes a decrease in Bitcoin volatility during US market hours compared to previous periods. This trend showcases the impact of ETFs on Bitcoin’s correlation with the S&P and its potential detachment from other cryptocurrencies.
“That literally shows you the impact that these ETFs have had, not only on Bitcoin’s correlation with the S&P, but also its potential de-correlation with other altcoins and other cryptos,” Winterflood said.
The Success of Spot-Bitcoin ETFs
Spot-Bitcoin ETFs have attracted approximately $13 billion in net inflows since their launch four months ago, making them one of the most successful product debuts in the industry.
- Recent data indicates a net flow of $542.9 million in just two days.
- Bitcoin is currently trading around the $70,000 level.
Bitcoin’s Performance Compared to S&P 500
A report by Hashkey reveals that Bitcoin outperformed the S&P 500 fivefold from January to April 2024. Bitcoin’s 53% share of the total crypto market cap contributed to a 57% year-to-date return, while the S&P 500 recorded a 12.20% growth in the same period.
Hot Take: Analyzing the Bitcoin Trading Surge
The surge in Bitcoin trading during US market hours highlights the growing influence of ETFs on the crypto market. This shift towards US dominance in trading volume signifies a new era in Bitcoin dynamics, shaping its correlation with traditional assets and other cryptocurrencies.
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