Data shows that most of Bitcoin’s most recent gains since November 27 have been observed during Asian trading hours, according to reports.
Bitcoin Sees Biggest Gains During Asian Trading Hours
According to the latest weekly report from Arcane Research, Asian trading hours yielded a cumulative positive BTC gain of around 16% between November 27th and January 15th. The report defines three main trading hours: between 0 and 8 Central European Time (CET) for Asia hours, 8-16 CET for Europe, and 16-24 for the US.
Here is a chart showing the cumulative return that Bitcoin received during each of these trading hours since November 27:
The value of the metric seems to have been the lowest for Europe | Source: Arcane Research's Ahead of the Curve - January 17
As shown above, Bitcoin has produced positive results during Asian trading hours between November 27 and January 15. This would indicate that traders in Asia have engaged in net buying during this period.
US trading hours usually see consolidation at this point, which means the activity is likely to stop. BTC returns were also negative at the end of the year during the hour, while they remained positive during the Asian hour.
There is one exception. However, the market reacted strongly to the CPI news last week, and BTC observed gains. Bitcoin’s cumulative return was 10% in the green during US hours, while it was 16% for Asian hours.
European hours also usually see a sideways movement, with BTC remaining in a slight negative return through most of the period, until the new rise, which also saw buying during this time zone. However, this uplift is enough to bring crypto back to a neutral return.
This means that most of BTC’s new profits came during the Asian hour, with US participants only pushing the price on the CPI increase last week, while European traders were mainly indifferent to the coin.
An interesting trend is seen in the correlation between Bitcoin and Nasdaq futures for each time zone. “Correlation” here refers to the measurement of how close BTC prices are following changes in Nasdaq futures.
The chart below highlights the trend in daily Bitcoin correlation with Nasdaq futures sorted by hour of the day.
Looks like the value of the metric has been low for the first two time periods | Source: Arcane Research's Ahead of the Curve - January 17
According to the report, the overall 30-day correlation between Bitcoin and the Nasdaq recently dropped to a low value. However, even so, there appears to be some relevant correlation during US trading hours. This means that price action tends to follow the Nasdaq futures in this time zone.
In Asian and European trading hours, the value of the indicator has remained consistently low this month so far.
BTC price
At the time of writing, Bitcoin is trading around $20,800, up 20% over the past week.
BTC has taken a plunge | Source: BTCUSD on TradingView
Featured images from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Arcane Research