US Bitcoin price highs drive staying power as Asian attempts sputter

21 February 2020

Cryptocurrency trading’s nature of round the clock and global exchanges opens up regional opportunities with the swings of Bitcoin. While it would be simple to assume that trading volumes across exchanges would differ, the data suggests otherwise.

Regional sparks for bull and bear markets trigger linear trading volumes across all global major cryptocurrency exchanges even though they may appeal to local audiences.

This suggests that time zones are irrelevant when there is a trading opportunity. Simply put, trading volumes mimic across time zones and exchanges year-round.

The linear pattern does not end at trading volumes. Price movements and arbitrage movement opportunities are fairly even year-on-year. This data points to equal opportunities in longing as well as shorting Bitcoin for day-to-day traders.

That’s as far as the orderly markets go, however. Bitcoin price highs and lows are sparked from both Asia and the United States with Europe showing reactive response to arbitrage movements.

Zubr takes a deeper look at where the opportunities lie, patterns in outcome and regional preferences when Bitcoin volatility is either low or high on any particular day.

Key Findings: 

• When Bitcoin hits its daily high during US trading hours, it has the potential to spur on more highs the next day a whopping 63% of the time. When Asia pushes the price to the daily high, it drops below that price 69% of the time the next day. This indicates a fundamentals belief shift in US movements when bull markets start stateside.

• Despite round the clock trading, with some exchanges appealing to certain regions more than others, volumes by region as a percentage of the annual total is linear across major trading venues. This means time zones don’t matter when there is a trading opportunity.

• Bitcoin hit daily highs during traditional Asia markets trading hours 42.7% of the time in 2019. Bitcoin also hit its lowest price during Asia markets hours 43.3% in 2019.

• If the price of Bitcoin hits a high during Asian trading hours, there are increased arbitrage opportunities

• Price movements (in USD) and arbitrage opportunities (daily fluctuations) are fairly even on an annual basis. This means traders will need to utilize both long and short positions equally.

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