The start of trading in New York appears to impact Bitcoin volatility much more than other stock markets.
Bitcoin (BTC) traders are changing their habits in 2020 — but volatility is still dominated by the start of New York stock market trading.
According to data currently circulating on social media, volatility for the largest cryptocurrency by market capitalization is highly correlated with the opening of United States markets.
U.S. stock markets spike BTC volatility
By comparison, London and Asia stock market opens have considerably less of an impact on Bitcoin price volatility.
“Can we just halt $BTC trading during Asia + Euro hours,” major trader Hsaka quipped, uploading the findings, which relate to the previous few days on U.S. exchange Coinbase.
Further data from on-chain analyst Skew confirms the trend. At present, around 4 pm UTC marks the most intense time of day for Bitcoin trading.
Again using Coinbase, in addition to Binance, Skew finds that midweek is also more intense than the start or end of the working week. Weekends, as is often noted, are quieter still.
Bitcoin trading volume one-month summary. Source: Skew
As an example, over the past 30 days, Coinbase saw an average of $6.5 million in volume between 3 pm and 4 pm UTC. The quietest hour, 9 am, saw just $2 million.
Those times correspond to around 12 pm EST, or 2.5 hours after New York markets officially open.
The changing face of Bitcoin trading
The data may have unearthed changing tendencies among Bitcoin traders, possibly due to the increasing prevalence of institutions within the market.
Last year, Cointelegraph reported on research that indicated that at the time, the most active trading time in terms of volume was 1 am UTC.
Taken from a 2017–2019 average, the research suggested that at the time, Asian traders had a noticeable impact.
Since then, the composition of the Bitcoin trading arena has undergone a metamorphosis, with bigger players and more capital entering. Bitcoin derivatives markets continue to set volume and open interest records in 2020.
You might also like: Are Bitcoin Cash, Bitcoin SV facing extinction?
- Tough Blow for Bitcoin: No US Interest Rate Cuts Anytime Soon - February 5, 2025
- Texas Governor: Establishing a Bitcoin Reserve is a Top Priority for 2025 - January 30, 2025
- Ross Ulbricht Released After 12 Years with a Crypto Wallet Worth $47 Million - January 24, 2025