Data shows that most of Bitcoin’s recent gains since Nov. 27 have been seen during Asian trading hours, according to a report.
Bitcoin saw the most returns during Asian trading hours
According to the latest weekly report from Secret investigationAsian trading hours saw positive cumulative BTC returns of around 16% between November 27 and January 15. The report defines the three main trading hours: between 0 and 8 Central European Time (CET) for Asian hours, 8-16 CET for European hours, and 16-24 for the US.
Here is a chart showing the cumulative returns Bitcoin has made during each of these trading hours since November 27:
The value of the metric seems to have been the lowest for Europe | Source: Arcane Research's Ahead of the Curve - January 17
As shown above, Bitcoin has mainly made positive returns during Asian trading hours between November 27 and January 15. This could indicate that traders in Asia participated in net purchases during this period.
US trading hours during this period were mostly consolidation, implying that activity may have come to a standstill. BTC returns were also negative during these hours at the end of the year, while always remaining positive during the Asian hours.
There was one exception. However, the market reacted strongly to the CPI news last week and BTC observed gains. Bitcoin’s cumulative returns are in the green at 10% during US hours, while they are at 16% for Asian hours.
European hours also mostly moved sideways, with BTC continuing to post slight negative returns for most of the period, until the recent surge, which saw buying in this time zone as well. Still, this increase was enough to return the crypto to a neutral return.
This means most BTCs recent gains came during the Asian hours, with US participants only driving the price higher during last week’s CPI spike, while European traders were mostly irrelevant to the currency.
An exciting trend appears in the correlation between Bitcoin and Nasdaq future for each time zone. The “correlationhere refers to a measurement of how closely the price of BTC has tracked changes in Nasdaq futures.
The chart below highlights the trend in daily Bitcoin correlation to Nasdaq futures sorted by hours of the day.
Looks like the value of the metric has been low for the first two time periods | Source: Arcane Research's Ahead of the Curve - January 17
According to the report, the overall 30-day correlation between Bitcoin and Nasdaq has recently dropped to fairly low values. Still, it seems that there is still a relevant correlation in US trading hours. This means that price action follows the Nasdaq futures in this time zone.
However, during Asian and European trading hours, the value of the indicator has remained consistently low so far this month.
BTC price
At the time of writing, Bitcoin is trading around $20,800, up 20% over the past week.
BTC has taken a plunge | Source: BTCUSD on TradingView
Featured image by Dmitry Demidko at Unsplash.com, Charts from TradingView.com, Arcane Research