Since the December 2021 crash, there have been several sell-off trends in bitcoin. These sell-offs have been the reason for the decline in the prices of the digital asset over the past couple of months. Naturally, sales trends can be fixed by their magnitude, depending on when the trading hours of a particular region are open. This time, macroeconomic pressure on the US market seems to be to blame.
American traders are driving sell-offs
The sell-offs of the past two months have been especially brutal and have driven prices down since the beginning of the year. However, it appears that most of the sales took place during the daytime in the US. This becomes apparent when looking at YTD values during US trading hours compared to YTD values in Europe. The sharp contrast shows where the most sales occurred.
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Currently, year-to-date values during US trading hours have declined to negative values. It sits at -32.55% while its European counterpart is looking at positive year-to-date +16%. This shows that the sell-offs over the past two months have mostly come from US traders. This is even compared to Asian trading hours, which also show a more favorable year-to-date value compared to the US.
BTC sell-offs intensify during U.S. trading hours | Source: Arcane Research
This is mainly evident due to the high correlation between bitcoin and the stock market over the past two months. It’s also good to note that US traders aren’t the only ones using macro markets to gauge their bitcoin risk. Because traders in other regions also use stock markets such as the NASDAQ and S&P 500 as a way to gauge their risk appetite, they can also dump bitcoins during US trading hours.
Bitcoin during trading hours
Recently, it has become apparent that there has been a lot of sell-off since the US markets opened up for trading. This can be seen from the fact that the price of a digital asset tends to recover during the early morning hours when the European and Asian markets are open. However, once US markets open during the day, downtrends are usually evident.
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This makes bitcoin a weak point at a time when US traders are active. Thus, these trading hours can provide a buying opportunity for interested parties and even a way to execute a quick short-term game for quick profits.
BTC recovers ahead of U.S. trading day | Source: BTCUSD on TradingView.com
However, it is important to note that the tide can change at any time. Sales can often end as abruptly as they started. Thus, a change in trend during US trading could affect the short-term sell-off play during trading hours.
The price of the digital asset surged above $30,000 in the early hours of Wednesday at the time of this writing. If the sell-off trends continue, then the price of bitcoin could fall below this level before the end of the day.
Featured image from Bitcoinist, charts from Arcane Research and TradingView.com
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