Markets
US Market Dominates Bitcoin Trading Amid ETF Boom
Bitcoin trading during market hours in the United States reached unprecedented levels, accounting for 46% of this year’s cumulative volume between January and 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 Trading Bitcoins peaks at the start and close of US trading hours. This trend correlates with the calculation of ETF net asset values at the close of US stock exchanges each weekday.
Additionally, Thursdays see the highest share of trading during business hours in the United States, contributing almost 15% of cumulative daily volume.
While Bitcoin trading volume during U.S. trading hours has rebounded to 2022 levels, volume during Asian trading hours remains significantly lower, Kaiko found. This change indicates the growing influence of US market activities on Bitcoin trading dynamics.
Learn more: How to Trade a Bitcoin ETF: A Step-by-Step Approach
Trading Bitcoin during market hours in the United States. Source: Kaiko/Bloomberg
Additionally, Toby Winterflood, Chief Product Officer of crypto data company – CCData, noted that Bitcoin’s performance during US market hours reflects weakness. volatility compared to previous periods.
“It literally shows you 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 cryptos,” Winterflood said.
THE Spot-Bitcoin ETF almost drew $13 billion in net revenue since their launch four months ago. This makes it one of the most successful early product categories 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 picking up again. Over the past two days alone, these ETFs have seen a cumulative net flow of $542.9 million.
Currently, Bitcoin is trading around the psychological resistance level of $70,000. According to a report According to Hashkey, Bitcoin returned five times the S&P 500 from January to April 2024.
Bitcoin, accounting for 53% of the total crypto market cap, has returned 57% year-to-date. While the S&P 500 recorded growth of 12.20% over the same period.
Learn more: Bitcoin Price Prediction 2024/2025/2030
Bitcoin’s generally lower volatility compared to other crypto assets highlights its unique position in the market. Many other crypto assets have outperformed Bitcoin multiple times, reflecting the broader volatility and potential rewards within the crypto sector.
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