According to Arcane Research, Uncle Sam is the most powerful person in the Bitcoin (BTC), trading market. The 90-day correlation between Bitcoin and the S&P 500 index is at its highest level since October 2020, while US trading hours show the greatest Bitcoin activity.
The U.S. trading hours for 2022 show a significant increase in trading volume. They account for 43% of the average 24-hour volume.
Since late 2021, trading volumes have increased during US market hours. This is an increase of 43% over the 36% figure for the period Nov. 1, 2021 through Jan. 16, 2022.
The U.S. market opens are shown in the graph from 3 p.m. UTC+1 to 9 p.m.
Arcane Research summarized the trend well:
The U.S. stock exchange opens and trading activity increases immediately. Bitcoin performance is closely correlated with the S&P 500.
It is interesting to note that American traders start the week with enthusiasm. Bitcoin trading volume increased by up to 50% on the three last Mondays and Tuesdays in the year before trending down to 40%.
This 40% is still significant considering that the U.S. Market Hours of 9:30 a.m. Eastern Time make up less than 30% of a 24-hour period.
Related: Bitcoin will be stronger after stocks drop ’10-20%. Bloomberg analyst
These findings show that American traders, or traders who wish to trade during American market hours, take the majority of Bitcoin trading activity. They do this early in the week. It also shows the significant impact of the U.S. Stock Market on Bitcoin’s performance recently.
There are many fireworks in the market, given that the “Bitcoin 90 day correlation to the S&P 500 currently at its highest point since October 2020” and volatility is low.
Analysts warn that Bitcoin could drop to $38,000 “before an eventual breakthrough,” according to data. This could occur during U.S. trading hours.