Analyst suggests traders could exploit Bitcoin surge during non-US trading hours

Bitcoin (BTC) has experienced a shift in its daily gains, with most of them occurring outside of U.S. trading hours since the launch of spot Bitcoin exchange-traded funds (ETFs). This change presents an opportunity for traders, according to analyst Markus Thielen. Previously, gains were concentrated during U.S. trading hours, but now investors can take advantage of frequent small profit margins. Thielen suggests buying Bitcoin before U.S. trading hours and selling a few hours later. On April 4, Bitcoin rallied approximately 2.6% outside of U.S. hours, while prices only rose around 0.6% during U.S. hours. Bloomberg ETF analyst Eric Balchunas also noted that the majority of the 40% gains in Bitcoin since spot Bitcoin ETFs were introduced happened outside regular U.S. market trading hours. U.S. trading hours are from 2:30 pm to 9:00 pm UTC. At the time of publication, Bitcoin is trading at $68,400 with a 64% growth in the first quarter of 2024. Thielen explained that investors often anticipate surges in ETF inflows by buying Bitcoin before the market opens. On April 4, Bitcoin experienced a 2.6% rise in the four hours before the U.S. market opened. Thielen also noted that U.S. investors tend to take advantage of the market spread between the spot market and the futures market. In June 2022, two ETF funds were launched to take advantage of overnight increases in U.S. stocks, but they were discontinued a year later due to other factors affecting performance. Before the introduction of spot Bitcoin ETFs, Asian investors were known to do more selling during Asian market hours. In March 2022, it was reported that Asian investors were generally sellers, while U.S. and European investors were buyers. This article does not provide investment advice or recommendations.