Why Bitcoin Sees Most Of Its Gains While US Traders Is Asleep
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This article discusses several reasons. The nature of the 24/7 market, Geographical Differences, Longer Timeframe, and Watching the Charts. These three factors help explain why Bitcoin sees its gains while US traders are asleep. Read on to discover why this happens and how you can benefit from it.
The Nature of a 24/7 Market
The nature of our economy has changed significantly over the last few decades. The nature of the workplace is changing, and it has become more flexible as digitalization has made it easier to work outside of office hours. Parents are working longer hours, but this trend must be tempered by the fact that families are the social fabric of society. The future prosperity of the world depends on the health of our next generation, so governments must make sure that working parents can find time to balance work and family life.
The idea of a 24-hour stock market was initially thought of as an exciting possibility in the 1990s when stock exchanges enabled trading outside of the traditional 9:30 am-4 pm Eastern session. But the idea never took off, and the stock market has remained relatively unchanged throughout several boom and bust cycles. Many investors and traders have questioned the viability of a 24-hour market. In spite of all its advantages, however, it may be beneficial for traders and investors.
Geographical Differences
While analysts have noted that assessing the adoption of cryptocurrency on a grassroots level is difficult, they believe that sanctions-prone countries, such as Cuba, will likely be under-counted for in the gains made by Bitcoin. In addition, estimating the amount of cryptocurrency adoption in a country with such a low GDP is not a straightforward process. For this reason, analysts do not expect the gains from these nations to be fully realized until 2020.
Longer Span of Time
In fact, the gains of Bitcoin have been greater over the weekend than on weekdays. This is because bitcoin gets going at night and parties all night, while the US markets remain open. The bigger investors, however, use trading algorithms to make their trades. So, while US traders are sleeping, Bitcoin is raking in bigger gains.
Because cryptocurrencies are traded around the clock, the price of Bitcoin is constantly being watched even when traditional markets are closed. In fact, Bitcoin has become the most liquid trading asset in history in terms of volume and trading throughout the day and night.
Watching The Charts
As long as the US market is closed, Bitcoin is generating larger gains throughout the night than the open US market. For example, a hypothetical strategy of buying Bitcoin on Friday at market close and selling it at market open would see a 260% gain compared to a 3.6% gain. This is because the price of Bitcoin tends to trend higher on weekends.
Because cryptocurrencies are traded 24 hours a day, Bitcoin is the most closely watched asset when traditional markets are closed. Moreover, it is a leading indicator of the downside. Therefore, if you’re an investor looking for a safe haven, Bitcoin may be a good idea.
Also Read: What to Know Before Buying Litecoin
