People get huge gains when US markets are open. It is strange when there’s no business on Wall Street, despite the reality that Bitcoin is going up. According to Bespoke Investment Group, when coins are purchased at the time of the equity market, it closes at 4 pm in New York, and it sells the next day when it opens at 9.30 am.
It generates gains of 260% in 2020. Buying the US market at the open and selling it at the close results in a 3.6% gain. The value of coins is higher on weekends. It tells us that when stock investors are busy with their personal lives; they get more profits.
Investors have a choice to switch to the crypto market. The crypto market is open twenty-four hours. It has become the best way to get more profits.
Reasons for High Profits Of Bitcoins
Here we discuss various reasons for Bitcoin’s rise during US traders’ absence from Wall Street.
24/7 Market
The working processes of cryptocurrency trading and the Wall Street market are different. The Wall Street market is open for a specific time, but the trading of cryptocurrency is never stopped. It works around the clock, so it is the main reason for the hike in profit in Bitcoins. It also attracted people to this market, and they got more gains than usual. As Bitcoin becomes the most traded asset, it also sets a record in the trading market.
Changes in the Geographical Area
The Federal Reserve and other central banks have instituted new policies. The high inflation is noted due to these rules. Many investors from the US and its nearby areas have sold their speculative investments. According to Noelle Acheson, head of market insights at Genesis Global Trading, the risk is also high across Asia. It is not the primary reason. She also makes it clear that various cultural attitudes that are accountable for risky investments also influenced the reason.
In 2015 and 2016, China was the center of Bitcoin trading, and many business volumes were also beginning. It also attracted investors to them, and they used to leverage international venues. The original crypto exchanges offered 125 x weight. There is a need to reduce high leverage.
Long Period
Many trading analysts point out that Bitcoin has interaction with investments. Cryptos and equities have sold all year. We know that stocks and digital assets are both risky investments. A clear correlation between outperformance and its existence. The market was rebounding over the last two years. It also covers a long period.
Managing Charts
There is a repression of crypto in China. The trading figures and movements are at their peak at 3 a.m. Eastern Time.
It relates to US stock market trading hours. Before the pandemic, there was also a trend of purchasing at the time of the market’s close and selling at the time of the market’s opening.
Correlations
Arcane Research analyst Vetle Lunde explains the Bitcoin trade by US trading hours in current months. He also refers to coins’ strong correlation to stocks. From the middle of 2020 to early 2021, the trading hours in the US market are an early bull market. This time it repeats with big institutional signs of progress in Bitcoin. The market has focused on its de-risking. The primary reasons for its de-risking are inflation and interest rates. It has effects on Bitcoin, so it is a cause of selling pressure at the time of US trading hours.
Sum Up
These are reasons why the profits of Bitcoin are high while the US market is not working. It helps us to understand the market behavior of cryptocurrencies. Many other reasons correlate with the high profits of Bitcoins.
