20 Sep 2021

Bitcoin (mostly) sleeps during Asian market hours

Examining the cumulative bitcoin returns by trading hour suggests that Americans have returned to the market.
Source: NYDIG Data
In January, NYDIG published a report on the geographic drivers of the bitcoin returns. We’re re-examining these returns today, to see how the market has evolved since January.Prior to 2020, Asia was the key aggressor, seeing the most noteworthy returns both towards the upside and the downside. In 2020 and 2021, however, bitcoin has been remarkably idle during Asia hours. Bitcoin’s cumulative returns during Asian hours from Jan 1st 2020 have remained negative from 2020 till today. Keep in mind, in this period, bitcoin climbed from $7200 to a peak of $64,000 and down towards $43,000.
Screenshot 2022-01-21 160151
Source: NYDIG Data
European and American trading hours have generally been the best hours to trade bitcoin in the last two years. Nevertheless, the cumulative returns during American trading hours peaked already on Jan 13th.From Jan 13th, returns during American hours remained flat until the middle of April. Since July, Bitcoin has shown more strength during American hours, indicating that American buyers have returned to the market.In 2021, European trading hours have been the by far best period to trade bitcoin. Interestingly, if you held long exposure during European trading hours only from Jan 1st, 2020, until June 15th, 2021, you would’ve netted a 395% gain.
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