US Macro Pressure Responsible For Bitcoin’s Entire Downtrend


Multiple sell-off trends have been recorded in bitcoin since the December 2021 crash. This sell-off was responsible for the drop in prices recorded in the digital asset in recent months. Of course, sales trends can be recorded based on their size, depending on when a particular region’s trading hours are open. This time, it appears that macro pressure in the US market is the culprit.

US traders boost sales

The sell-off of the past two months has been particularly brutal and has dragged down values ​​for the year so far. However, it appears that most of the sales occurred during the daytime trading hours in the United States. This becomes clear by looking at the year-to-date values ​​during trading hours in the US compared to the European year-to-date value. The stark contrast reveals where most of the sales had taken place.

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As it stands, year-to-date values ​​have fallen to negative during US trading hours. It sits at -32.55%, while its European counterpart is looking at positive year-to-date values ​​of +16%. This shows that the sell-off over the past two months has mainly come from US traders. This is even when compared to Asian trading hours which also show a more favorable year-to-date value compared to the US

BTC Selling Increases During US Trading Hours | Source: mysterious investigation

Most of the time, this is apparent due to the high correlation between bitcoin and the stock market over the past two months. It is also worth noting that US traders are not alone in using the macro markets to assess their risk in bitcoin. Since traders in other regions also use stock markets such as the NASDAQ and the S&P500 as a way to assess their risk appetite, they can also dump bitcoin during US trading hours.

Bitcoin during trading hours

Recently, it was clear that there have been a lot of sell-offs once the US markets open up for trading. This is evidenced by the fact that the digital asset price tends to recover during the early morning hours while the European and Asian markets are open. However, once the US markets open for the day, the downward trends are usually apparent.

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This places bitcoin’s current weakness in the time US traders have been active. As such, these trading hours can provide a buying opportunity for interested parties, and even a way to run quick short-term plays for quick profits.

BTC Recovers For US Trading Day | Source: BTCUSD on TradingView.com

However, it is important to note that the tide can change at any time. Sales can often end just as dramatically as they started. Thus, a change in trend during US hours could affect short-term games that capitalize on the sell-off during trading hours.

The price of the digital asset has recovered above $30,000 in the early hours of Wednesday at the time of writing. If the sell-off trends continue, the price of bitcoin could fall below this level before the day is over.

Featured image from Bitcoinist, charts from Arcane Research and TradingView.com

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