Asian Traders Behind Recent Bitcoin Gains, Report Reveals

Data shows that most of Bitcoin’s recent gains since Nov. 27 have been seen during Asian business hours, according to a report.

Bitcoin saw the most returns during Asian trading hours

According to the latest weekly report of arcane investigationAsian trading hours saw positive cumulative BTC returns of around 16% between Nov. 27 and Jan. 15. The report defines the three main trading hours: between 0 and 8 Central European Time (CET) for Asian hours, 8 and 16 CET for European hours, and 16-24 for the US.

Here is a chart showing the cumulative returns Bitcoin 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 seen mostly positive returns during Asian trading hours between November 27 and January 15. This would suggest that Asian traders have been engaging in net buying during this period.

US trading hours saw mostly consolidation in this time period, implying that activity may have stalled. BTC returns were also negative at the end of the year during these hours, whereas they always remained positive during Asian hours.

There was an exception. However, the market reacted strongly to the CPI news last week and BTC saw gains. Bitcoin cumulative returns sit at 10% in the green during US time, while it sits at 16% in Asian time.

European time also saw mostly sideways movement, with BTC remaining in slightly negative returns for most of the period, until the recent surge, which also saw buying during this time zone. Still, this improvement was enough for cryptocurrencies to return to neutral returns.

This means that most of the BTC recent earnings it came during Asian hours, with US participants only pushing price on last week’s CPI rally, while European traders were mostly irrelevant to the currency.

An exciting trend appears in the correlation between Bitcoin and nasdaq futures for each time zone. He “correlation” here refers to a measure of how closely the BTC price has been following changes in Nasdaq futures.

The chart below highlights the trend in Bitcoin’s daily correlation with Nasdaq futures sorted by time of day.

Bitcoin Nasdaq Correlation

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 the Nasdaq has recently plunged to quite low values. However, even so, it would appear that there is still a relevant correlation during US business hours. This means that price action tends to follow Nasdaq futures in this time zone.

However, in Asian and European trading hours, the value of the indicator has been consistently low this month so far.

Bitcoin price

At the time of writing, Bitcoin is trading around $20,800, up 20% in the last week.

Bitcoin price chart

BTC has taken a plunge | Source: BTCUSD on TradingView

Featured image by Dmitry Demidko on, Charts from, Arcane Research

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