30 Aug 2022

Bitcoin’s downside in 2022 has not occurred during the European watch

BTC's downside in 2022 has mostly occurred during Asian and U.S. market hours.
Source: Tradingview (Coinbase)
Near nine months into the year, atop of a YTD loss of 58% in BTC, the cumulative bitcoin returns during European trading hours sits at -1.36%. The flat returns during European hours could be caused by the significant importance of U.S. markets on BTC lately, with European markets being open while Americans sleep.Overall, BTC has been relatively flat during European hours, a trend that is even more clear when assessing the cumulative returns of BTC since the October breakout in 2020.
Source: Tradingview (Coinbase)
Contrary to the flat performance during European markets, the Asian performance has been consistently negative throughout the year, with few examples of upside during Asian hours. So far this year, BTC’s performance has been the worst during Asian hours, seeing a net loss of 41.74%, with the most substantial downside being experienced during the 3AC collapse in June. Further, only 42 of the 240 trading days this year have seen BTC returns during the Asian session surpass 1%, while European and American hours have seen 57 and 56 days of gains surpassing 1% this year. The U.S. market hours seems to be the most significant contributor to BTC’s direction. Overall, the most erratic price movements have occurred during U.S market hours.
Source: Tradingview
Year to date, BTC is down 25% during U.S. market hours, with a very tight relationship to the cumulative YTD returns of Nasdaq of 24%.
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