46% of Bitcoin Trading Volume Concentrated in US Trading Hours
CryptoNewsTerminal Staff21 May, 2024
46% of Bitcoin Trading Volume Concentrated in US Trading Hours
46% of Bitcoin's Cumulative Volume in 2023 Traded During US Market Hours Crypto market research firm Kaiko has dropped a new report revealing that 46% of bitcoin's cumulative trading volume as of April 2023 occurred during U.S market trading hours. The surge in volume during U.S trading hours may be attributed to the launch of bitcoin spot exchange-traded funds (ETFs) in January. These ETFs calculate their net asset value (NAV) at the close of each trading day in the U.S., leading to price discovery and arbitrage activity that contribute significantly to trading volume. Bitcoin trading volume in U.S. trading hours has recovered to 2022 levels, while trading volume in Asian trading hours remains subdued. This shift in trading patterns suggests that institutional investors based in the U.S. are playing an increasingly dominant role in the bitcoin market. The concentration of trading volume in U.S. trading hours could have implications for the price of bitcoin. If U.S. investors are the primary drivers of demand, the price of bitcoin could be more volatile during U.S. trading hours. This could lead to increased volatility in the bitcoin market overall.
