Home News 43% of Bitcoin trading volume during US market hours: Arcane Research

43% of Bitcoin trading volume during US market hours: Arcane Research

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According to a report issued by Arcane Research, Uncle Sam controls the Bitcoin (BTC) trading market. The 90-day connection between Bitcoin and the S&P 500 is currently at its highest level since October 2020. With the majority of Bitcoin activity occurring during US market hours.

Trading volume in the United States is expected to expand significantly in 2022, accounting for 43% of the total 24-hour volume on average.

Since late 2021, trading volumes have been increasing throughout US market hours. The 43% number is up from 36% between November 1, 2021 and January 16, 2022.

The US market opens from 3 p.m. to 9 p.m. in the graph. UTC+1:

Arcane Research nicely summarised the trend:

“As soon as the U.S. stock market opens, trading activity picks up, with Bitcoin’s performance closely connected to the S&P 500.”

Recent significant influence of the US stock market on Bitcoin’s performance

Surprisingly, American traders are also raring to go this week. On the last three Mondays and Tuesdays of the year, up to 50% of Bitcoin trade volume happened, before drifting down to the 40% area.

Given that the U.S. market hours of 9:30 a.m. to 4 p.m. Eastern Time account for less than 30% of a 24-hour day, the 40% is still significant.

The statistics show that American traders — or traders intending to trade during American market hours — account for the majority of Bitcoin trading activity, which occurs early in the week. However, it also demonstrates the recent significant influence of the US stock market on Bitcoin’s performance.

Given that the “Bitcoin 90-day correlation to the S&P 500 is currently at its greatest level since October 2020” and volatility is low, there are plenty of demands for market fireworks.

In light of the data, researchers predict that Bitcoin will drop to $38,000 “before an eventual breakout”. This might happen during U.S. trading hours.

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