most Bitcoin transactions take place? Times of peak trading volume
The results of a statistical study show that almost half of the bitcoin transactions are made during the hours when traditional financial markets in the United States are active.
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Some experts believe that prices are more likely to fluctuate during these hours than at other times of the day.
According to the Quin Telegraph, data from the Arcane Research Institute shows that most bitcoin market transactions take place during the hours when American investors are active in the stock market. While the peak trading hours in the United States show the highest bitcoin trading activity, the 90-day bitcoin price correlation with the S & P500 stock index has reached its highest level since October 2020.
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The S& P500 index is a technical indicator that tracks the price performance of the top 500 stocks traded on the NYSE.
By 2022, the proportion of total transactions accounted for by US-based trading hours had increased significantly, reaching approximately 43 percent.
Bitcoin trading volume has been on the rise since late 2021, during the hours of traditional US financial markets. The current figure is for the period from November 1, 2021, to January 16, 2022 (November 4 to January 17), which has increased from 36% to 43%.
The chart below shows the reopening time of traditional financial markets in the United States, which is from 14:00 to 20:00 GMT (17:30 to 23:30 Tehran time).
Average deals are based on world time plus one hour (UTC + 1).
Arkan Research has said in this regard:
Global trading activity increased immediately with the opening of the US stock market, and the performance of Bitcoin is strongly correlated with the S & P500 index.
- Interestingly, American traders are also more active at the beginning of the week. Approximately 50% of Bitcoin trading volume in the last three months occurred on Mondays and Tuesdays in the last three weeks of 2021, just before the share of US trading hours fell to around 40%.
- Given that the trading hours related to the stock market in the United States are from 9:30 am to 16:00 pm Eastern time (18:00 to 00:30 am Tehran time) and less than 30% of the 24 hours, it accounts for 40% of the total bitcoin trading volume.
- These findings show that US traders, or traders who want to trade at the same time as US stock market hours, account for a large share of Bitcoin trading activities.
- It can also be said that most of their transactions are usually done early in the week. It also somehow reflects the significant impact the US stock market has had on Bitcoin's recent performance.
- Some experts believe that given the 90-day correlation of Bitcoin with the S & P500 stock index, which is currently at its highest level since October 2020 and the rate of market fluctuations is low, there is a possibility of an uptrend in the market. The move, experts say, may occur during US stock market trading hours.