According to a report published by Arcane Research, the United States of America dominates the Bitcoin trading arena. Bitcoins’ 90-day correlation to the S&P 500 is currently at its highest since October 2020, while the United States trading hours show the most Bitcoin activity. In 2020, the U.S. trading hours showed a marked increase in trading volume, making up 43% of the 24-hour volume on average.
Trading volumes have trended up during U.S. market hours since late 2021.
Trading volumes have trended up during U.S. market hours since late 2021. The 43% figure is up from 36% from the period from Nov 1, 2021, to Jan 16, 2022. Arcane Research summed up the trend by commenting,” Trading activity tends to immediately pick up as the U.S. stock market opens, with Bitcoin performance being tightly correlated to that of the S&P 500.” U.S. traders also kick off the week with gusto. Up to 50% of Bitcoin trading volume occurred on the last three Mondays and Tuesdays of the year before trending down to the 40% range.
The U.S. stock market also has an impact on the performance of Bitcoin.
The findings also reveal that the U.S traders — or traders wishing to trade during American market hours — take the lion’s share of Bitcoin trading activity, and they do it early on in the week. However, it also shows the considerable impact of the U.S. stock market on the performance of Bitcoin lately. Given that the “Bitcoin 90-day correlation to the S&P 500 is currently at its highest since October 2020,” and volatility is low, calls for fireworks in the market abound. As analysts have warned that Bitcoin could dip to $38,000 “before an eventual breakout,” in light of the data, the move could happen during U.S. trading hours.