Bitcoin trading is a natural part of the crypto space. As with any financial market, there will be those who purchase assets to hold for a long time and those who prefer to try for short-term gains by trading.
The number of traders around the globe has been growing with the rise of the market, but it is still majorly skewed towards a particular region. Traders from the United States number in the majority and dominate the market. This is not just true for bitcoin but other financial markets as well, leading to some significant market movements during the US trading hours.
US Traders Dominate The Market
Arcane Research published a report on trading across various financial markets including bitcoin and the S&P 500. The results of which showed that most activities in both trading spheres came mostly from the United States.
For those trading bitcoin, there has always been a significant uptick during the US trading hours. This is the same across other markets like the S&P 500 which shows the same high volume during US trading hours. After the US markets close, trading continues but to a much lower extent when it comes to volume. This was evident in 2021, but 2022 has shown starker differences.
The report found that the United States made up 36% of bitcoin trading volume when the U.S. stock market was open for trading. In the new year, the percentage of market volume made up by the US went up even more. Arcane Research found that since January 1st, 43% of all of bitcoin’s trading volume were recorded during the hours that the U.S. stock market was open.
US traders record highest BTC trading activity | Source: Arcane Research
This trend continues on a weekly basis and even going into the weekend. It shows that traders from the United States are one of the biggest driving forces behind the growth of BTC trading.
Bitcoin Trading Volume By Weekday
Breaking down bitcoin trading volume by weekday gives greater insight into how much the space is dominated by traders from the United States. Bitcoin trading volume for the past three weeks has recorded noticeable upticks during the U.S. market hours. Mostly, Mondays and Tuesdays see the highest dominance from traders in this region, reaching as high as 50% of all trading volume.
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Days following these usually see dominance to a lesser extent but still significant nonetheless. It fluctuates during these days, however, still going as high as around 40% of trading volume during U.S market hours.
BTC adds $1,000 in value over the last 24 hours | Source: BTCUSD on TradingView.com
The weekends have recorded the lowest volumes for U.S. BTC traders. Mostly this is because financial markets can be closed, leading to low volatility, but U.S. market hours during the weekends still see U.S. traders dominating the space.
The data presented by Arcane Research in its report conclusively shows that American traders are still the most active bitcoin traders. Additionally, the U.S. stock market impacts bitcoin’s performance given that traders are the most active during U.S. market hours.
Featured image from Nairametrics, charts from Arcane Research and TradingView.com