Since the launch of the Spot Bitcoin ETFs in the United States, the Bitcoin price has been performing fantastically. What is striking is that many of those returns were taken outside US trading hours. According to Markus Thielen of 10x Research, this can offer opportunities for keen investors.
“Traders can take advantage of this information and buy Bitcoin before US trading hours, then hit the sell button a few hours later,” Thielen told Cointelegraph.
Bitcoin up outside US trading hours
On April 4, Bitcoin managed to rise 2.6 percent outside US trading hours, while only rebounding 0.6 percent during trading hours.
Bloomberg ETF analyst Eric Balchunas noted as much in an April 5 tweet. “The vast majority of Bitcoin’s 40 percent increase since the introduction of the Spot Bitcoin ETFs on January 11 occurred outside of regular trading hours in America,” Balchunas wrote.
At the time of writing, the Bitcoin price is trading at $67,600 and we have fallen considerably since reaching $69,200 a few hours ago. Can the bulls rally today and start big gains again?
Buy before the market opens
Markus Thielen explains that investors, including those from other time zones, often anticipate increases in ETF flows by purchasing Bitcoin before the market opens.
“We also see in our data analysis that Bitcoin appears to be rising in the hours leading up to the opening of US ETF trading, which is a sign that traders are hoping to get ahead of the inflows,” Balchunas said.
This of course makes it less attractive for ETF investors to buy, because it is used as liquidity by smart and fast traders.
However, for most people this is not relevant because the average investor should not be concerned with quick profits. Don’t forget that you are often competing against professionals, who will not easily be defeated by the average amateur.
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Source: https://newsbit.nl/waarom-schiet-bitcoin-steeds-omhoog-buiten-de-amerikaanse-handelsuren/
