Bitcoin’s Daily Gains Shift Outside US Trading Hours Post Spot ETFs Launch
Summary:
Following the launch of spot Bitcoin ETFs, most of Bitcoin's daily gains appear to be occurring outside U.S. trading hours. This trend overturns the previous two years' pattern, potentially offering traders the opportunity to capitalize on frequent minor profits. Investors are reportedly anticipating ETF surges by buying Bitcoin before U.S. market hours. Bitcoin's price has seen significant increase during the first quarter of 2024, to currently trading at $68,400. Over the past week, the digital asset has been oscillating between $64,940 and $71,256. It's also noted that U.S. investors are leveraging the market spread between the spot and futures market.
An analyst has revealed interesting insight about Bitcoin (BTC) sharp shifts. Since the inception of spot Bitcoin ETFs, the heftiest daily yield has been recorded predominantly outside U.S. market hours instead of its usual peak during those hours in the past two years. The pivot to this trend, as elucidated by Markus Thielen from digital research company 10x Research, offers lucrative openings for investors through regular minor profits. Thielen highlighted to Cointelegraph that buying Bitcoin prior to U.S. trading hours and selling a few hours later could be a rewarding stratagem for traders. Around 2.6% of Bitcoin's leap on April 4 happened outside U.S. trading hours compared to a scanty 0.6% within U.S. hours. Eric Balchunas, a Bloomberg ETF analyst, also remarked on April 5 that most of the 40% increment in Bitcoin value following the advent of spot Bitcoin ETFs on Jan. 11 happened outside U.S. regular market hours. U.S. market hours are defined as the functioning hours of the New York Stock Exchange (NYSE) and the Nasdaq stock exchange, which is from 2.30 pm to 9 pm UTC. Bitcoin is currently trading at $68,400 at the point of publication, as informed by Cointelegraph. The first quarter of 2024 has already witnessed a 64% hike in Bitcoin. Thielen deduced that any investor can expect a bump in ETF inflows by investing in Bitcoin before the market commences for the day. On April 4, Bitcoin saw a modest 2.6% climb four hours prior to the U.S. market kick-off, scaling from $65,593 to $67,308. Over the past week, Bitcoin has been wavering between $64,940 and $71,256. However, Thielen underlined that U.S. traders seemingly leverage the gap between the spot market and the futures market. In June 2022, two of such ETF funds launched sought to capitalize on the overnight rise in U.S. stocks, although they discontinued within a year due to other impacting factors like off-hours announcements, data releases, and earnings reports. Prior to the launch of spot Bitcoin ETFs, it was generally perceived that Asian investors were the main sellers during Asian market hours. However, this has shifted recently, with indications that investors in Asia generate selling pressure, while U.S. and EU-based investors contributing to buying pressure. While making investment decisions, investors are being reminded to do proper due diligence as every investment includes risks.
Published At
4/5/2024 7:14:46 AM
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