Bitcoin Surge Signals Shift in Trading Focus to US Time Zone

Bitcoin's dominance in the US market is evident in its pronounced price swings coinciding with US trading hours. The surge in US bitcoin exchange-traded funds (ETFs), attracting substantial inflows, has contributed to the liquidity and volatility shift to the US market, with hourly price gaps and spot volumes increasing around the time of ETF net asset value calculations.

Bitcoin's Surge Highlights Shift in Trading Focus to US Hours

In a notable development that has enlivened a relatively subdued Monday on Wall Street, Bitcoin has experienced a significant surge, rising by 7% to reclaim the $70,000 threshold. This latest upward movement reinforces the growing trend of pronounced Bitcoin price fluctuations occurring during US trading hours.

The aforementioned pattern has been evident in previous months, notably in February when Bitcoin crossed the $60,000 mark for the first time since 2021, and in March during its ascent to a record high. Concurrently with the introduction of Bitcoin exchange-traded funds (ETFs), the trading focus has shifted to the United States. These ETFs have attracted over $11 billion in net inflows since their debut on January 11th.

A metric analyzing the discrepancy between Bitcoin's hourly high and low prices reveals a wider gap in the US compared to Asia, according to research firm Kaiko. As a result, volatility has become "more concentrated during US opening hours," the firm observed.

BlackRock Inc. and Fidelity Investments are among the prominent financial institutions that have launched successful Bitcoin ETFs in the US, which have had a transformative impact on the structure of the crypto market. These developments have enhanced Bitcoin market liquidity while generating a surge in spot volumes around the time when ETFs determine their net asset values, typically coinciding with the close of US trading.

Notably, Asia emerged as a new focal point for digital asset markets earlier this year, coinciding with a period of heightened regulatory scrutiny in the United States. During this time, Bitcoin trading activity intensified during Asian hours.

As of Tuesday morning, Bitcoin remained relatively stable at $70,665 in London. On Monday, the premier cryptocurrency briefly surpassed $71,000 in the US before cooling slightly to end the session with a gain of approximately 7%. Over the past year, Bitcoin has experienced a surge of 154%, approaching its mid-March peak of almost $73,798.