The world’s biggest crypto price swings and volatility once again grabbed the eyeballs of every investor as Bitcoin jumped by around 7% to breach the $70,000 mark. This surge comes in when there is a relatively slow trading recorded on Wall Street. However, the global crypto market cap jumped by more than 5% over the last day.
US trades pumping Bitcoin?
The trend of recording higher price fluctuation during the US trading hours is getting evident since Bitcoin price breached $60,000 in February. However, BTC moved ahead to hit the new all time high (ATH) of $73,750 in March.
The much anticipated introduction of spot Bitcoin exchange-traded funds (ETFs) has played a crucial role in intensifying this speed in the US trading hours. Data shows that over $11 billion in net inflows recorded since their launch in January.
According to research done by Kaiko shows that the volatility of Bitcoin is measured by the difference between high and low prices each hour. The fluctuation can be more seen during the US trading hours compared to Asian hours. This directly suggests that trading activity and price movements are more concentrated during US market hours.
The success of Ubased Bitcoin ETFs from companies like BlackRock and Fidelity Investments has led to a transformative impact on the crypto ecosystem. These investment products have not only pushed Bitcoin market liquidity but have also led to a surge in spot volumes around the time. This is the reason that ETFs calculate their net asset value at the close of the U.S. trading day.
It is important to see that the Asia trading time zone had briefly emerged as a focal point for the crypto market back in 2023 when the US was watching regulatory scrutiny. However, the recent surge in Bitcoin trading activity during US hours reflects a shift towards American markets.
What’s going on with ETFs?
Bitcoin price is up by a good 71% in the last 60 days. It is trading at an average price of $70,720, at the press time. Its 24 hour trading volume is up by 47% to stand at $44.5 billion. The biggest crypto asset is holding a market cap of around $1.4 trillion.
Meanwhile, Grayscale Bitcoin Trust recorded significant outflows of $1.9 billion last week, contributing to net outflows for U.S. spot Bitcoin ETFs for the week ending March 22. This contrasts with buying interest observed in new ETFs from BlackRock, Fidelity, and others since the SEC approved cryptocurrency ETFs in January.
