Cryptocurrency News

American Market Leads in Bitcoin Transactions During Surge of ETF Activity

2 min read
Spot-Bitcoin Etfs Drive Unprecedented Trading Volumes During Us Hours

    <p><strong>The US market hours have witnessed a record surge in Bitcoin trading, capturing 46% of total trading volume from the start of the year until April.</strong></p>
    <p>This uptick in activity can be attributed to the introduction of physical Bitcoin-based exchange-traded funds (ETFs) in January.</p>
    <h2 class="wp-block-heading" id="h-us-dominates-bitcoin-trading-asia-lags-behind">Predominance of the US in Bitcoin Trading While Asia Falls Behind</h2>

    <p>According to Kaiko Research, there's a noticeable increase in <a href="" target="_blank" rel="noreferrer noopener">Bitcoin trading volumes</a> coinciding with the opening and closing timings of the US market. This trend matches up with the calculation times of ETFs net asset values, which coincide with the closing of the US stock markets on weekdays. </p>
    <p>The peak of trading volume within US hours typically occurs on Thursdays, which represent about 15% of the total daily trading volume.</p>
    <p>Although trading volumes in US hours have returned to their 2022 levels, Asian market hours continue to experience significantly reduced trading volumes, indicating an increasing impact of US market activities on Bitcoin's trading patterns, as per Kaiko's findings.</p>
    <p><strong>Learn more: <a href="" target="_blank" rel="noreferrer noopener">Mastering Bitcoin ETF Trading: A Comprehensive Guide</a></strong></p>

    <figure class="wp-block-image size-large">
        <img decoding="async" width="850" height="677" alt="Bitcoin Trading During US Market Hours" class="wp-image-518480 lazy" srcset=" 850w, 360w, 768w, 150w, 1092w" sizes="(max-width: 850px) 100vw, 850px" loading="lazy" src=""/>
        <figcaption class="wp-element-caption">Bitcoin Trading Activity Peaks During US Market Hours. Source: <a href="" target="_blank" rel="noreferrer noopener nofollow">Kaiko/Bloomberg</a></figcaption>

    <p>Furthermore, Toby Winterflood, the Chief Product Officer at cryptocurrency data firm CCData, observed a reduced <a href="" target="_blank" class="glossary-only-link">volatility</a> in Bitcoin performance during the US trading hours, compared to past data. </p>
    <blockquote class="wp-block-quote">
        <p>"The data clearly illustrates the impact these ETFs have made, not only on how Bitcoin moves in tandem with the S&P 500 but also on its potential divergence from alternative cryptocurrencies and the broader crypto market," remarked Winterflood.</p>

    <p>The recently launched <a href="" target="_blank" rel="noreferrer noopener">spot-Bitcoin ETFs</a> have attracted approximately <a href="" target="_blank" rel="noreferrer noopener">$13 billion in net investments</a>, marking one of the most notable entrances in industry history. </p>
    <p>Despite a slowing in demand with a net inflow of $1.3 billion in May, the investment pace seems to be accelerating, with these ETFs drawing in $542.9 million in just the past two days.</p>
    <p>At present, <a href="" target="_blank" rel="noreferrer noopener">Bitcoin hovers around the key $70,000 resistance level</a>, with a <a href="" target="_blank" rel="noreferrer noopener nofollow">report</a> by Hashkey noting it outperformed the S&P 500 fivefold from January through April 2024. </p>

    <p>Bitcoin, comprising 53% of the total crypto market cap, yielded a 57% return year-to-date, while the S&P 500 saw a 12.20% rise during the same timeframe.</p>
    <p><strong>Discover more: <a href="" target="_blank" rel="noreferrer noopener">Forecasting Bitcoin Prices for 2024/2025/2030</a></strong></p>
    <figure class="wp-block-image size-large">
        <img decoding="async" width="850" height="492" alt="Comparing Bitcoin and S&P 500 Price Trajectories" class="wp-image-518499 lazy" srcset=" 850w, 360w, 768w, 1536w, 2048w, 150w" sizes="(max-width: 850px) 100vw, 850px" loading="lazy" src=""/>
        <figcaption class="wp-element-caption">Charting the Price Performance of Bitcoin in Relation to the S&P 500. Source: <a href="" target="_blank" rel="noreferrer noopener nofollow">TradingView</a></figcaption>

    <p>The typically stable volatility of Bitcoin, in contrast with other cryptocurrencies, underscores its distinctive status in the marketplace. Many other cryptocurrencies have delivered multiplicative returns when compared to Bitcoin, showcasing the sector's inherent volatility and the high-reward potential.</p>
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