Markets
US market dominates Bitcoin trading amid ETF boom
Bitcoin trading during US market hours has reached unprecedented levels, accounting for 46% of this year’s cumulative volume from January to April.
This increase in trading activity is closely linked to the January launch of spot Bitcoin exchange-traded funds (ETFs).
US dominates Bitcoin trading, Asia lags behind
Kaiko Research highlights that the volume of Bitcoin Trading spikes at the start and close of US trading hours. This pattern correlates with the calculation of ETF net asset values at the close of US stock exchanges each day of the week.
Additionally, Thursdays see the largest share of trading during US hours, contributing nearly 15% of the cumulative daily volume.
While Bitcoin trading volume during trading hours in the US has recovered to 2022 levels, volume during trading hours in Asia remains significantly lower, Kaiko found. This change indicates the growing influence of US market activities on Bitcoin trading dynamics.
See more information: How to Trade a Bitcoin ETF: A Step-by-Step Approach
Bitcoin trading during US market hours. Source: Kaiko/Bloomberg
Additionally, Toby Winterflood, chief product officer at crypto data firm – CCData, noted that Bitcoin’s performance during US market hours reflects the silence. volatility compared to previous periods.
“This literally shows the impact that these ETFs have had, not only on Bitcoin’s correlation with the S&P, but also on its potential decorrelation with other altcoins and other cryptocurrencies,” said Winterflood.
O Spot Bitcoin ETFs they almost tied US$13 billion in net inflows since its launch four months ago. This makes them one of the most successful product category debuts in the industry’s history.
Although demand has slowed, with a net inflow of $1.3 billion so far in May, the pace appears to be accelerating again. In the last two days alone, these ETFs have recorded a cumulative net inflow of $542.9 million.
At the moment, Bitcoin is trading around the $70,000 psychological resistance level. According to a report by Hashkey, Bitcoin returned five times the S&P 500 from January to April 2024.
Bitcoin, representing 53% of the entire crypto market value, has returned 57% year-to-date. The S&P 500 registered growth of 12.20% in the same period.
See more information: Bitcoin Price Prediction 2024/2025/2030
Bitcoin’s typically lower volatility compared to other crypto assets highlights its unique position in the market. Many other crypto assets have returned multiples of Bitcoin’s performance, reflecting the broader volatility and potential rewards within the crypto sector.
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