World financial markets do not work simultaneously, due to differenttime zones. A number of researchers triedto identify the patterns and dependances of traditional financial institutions and stock prices from the time of day. A one trend was found as a result of the research: trading activity increases with the opening of exchanges in some major countries, for example, the United States, which sometimes leads to the increasedvolatility and sharp jumps of prices of certain assets. Experienced traders are well aware of this and try to cash out on this, while focusingon general trends of the market.
But is it applicable to cryptocurrency markets? Because, as it is known, the vast majority of these markets work around the clock, therefore only temporary price fluctuations may be caused by the human factor. For instance, Asian or American investors may wake up and see a sudden price drop of some cryptocurrency. Then they might start the panic selling of their coins, worsening the situation on the market. In this case, it is necessary to figure out such trends in advance and to develop a strategy, that can help youto save funds from these "panic attacks" on the market. Let's try to do it.
For illustration purposes, we highlighted the "awakening hours" (7-10 am) in three main regions: Asia (UTC+9), Europe (UTC+1) and the USA (UTC-5). On the BTC price chart below, these zones are highlighted red, green, and blue respectively.
There are no systematic trends on this chart, except for some separate coincidences when large market movements were connected to highlighted zones. To study this more thoroughly, we calculated the percentage change of BTC price during the day.
Still no trends. All changes are limited, and few jumps from 13:00 to 15:00 were caused by the general volatility of the market in these days.
Let's come back to the original idea of time zones. We chose time intervals of three hours and calculated the average percent changes of prices during the day in all possible combinations.
Yet again, it turns out that all changes vary in the very moderate for cryptocurrencies range: 0.06-1%. The peak of growth isthe range between 19:00-22:00 UTC, whichhints us that either Alaska, that wakes up in this hours, is in fact impacting the cryptocurrency market way more than we thought, or that we should look for the answer elsewhere.
Elsewhere is thefinal evaluation: correlationbetween hourly price changes in percent and BTC price.
There is no sense to go further: correlation coefficients for weeks are 0.07, while for the weakest dependance it should be at least 0.1.
That is why you may be confident that time zones are little to noaffect BTC price and, as a consequence, the cryptocurrency market in general. On the one hand, traders are not able to earn a couple of percent on the daily market fluctuations.On the other hand, youcan leave your the money for the night, without any fear that the sudden panic in some country might halve your cryptocurrency funds.
FAQs
High volatility: The PST time zone is also one of the more volatile time zones for cryptocurrency trading. This means that traders need to be prepared for sharp price movements. Time zone difference: Traders who live in other time zones may need to adjust their trading schedule to match the PST time zone.
Which time zone is best for crypto trading? ›
What time of day is crypto most traded? Crypto traders have long debated the best time to trade cryptocurrencies. According to data from on-chain data provider Skew, 3 - 4 PM UTC is when cryptocurrency trading is most intense.
What timezones are crypto markets? ›
In the context of cryptocurrencies, the crypto world runs on UTC. In contrast to most financial exchanges, cryptocurrencies operate on a 24/7 basis.
What time is the highest volume for crypto? ›
Cryptocurrencies are most commonly traded between 8am to 4pm in local time. While the crypto market is 24/7, your trades are more likely to be executed when there is the highest level of activity. Outside of these hours, when trading is lighter, it can be more difficult to open and close trades.
Do crypto prices drop at night? ›
Prices are lower when the market is less busy. Although you can trade cryptocurrencies at any time of day, the market is more active during typical work hours and less active early in the morning, at night, and on the weekends.
What time does crypto market peak? ›
When is the best time to trade cryptocurrency? The best time of day to trade cryptocurrency is usually in the market's peak trading hours, which are between 8am to 4pm in local time, when there is the highest volume of trading.
What day of the week is best for crypto trading? ›
Don't Wait Until Friday
When the weekend hits, prices tend to drop until market activity begins the following Monday. Since prices are likely to be at their lowest point following a weekend of low trading activity, Monday is the best time of the week to buy cryptocurrency.”
How can I make $100 a day with cryptocurrency? ›
Exploit market volatility: The cryptocurrency market is known for its high volatility. Exploiting these price fluctuations by buying low and selling high can be a key strategy for earning $100 a day.
Which crypto will boom in 2024? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Ethereum (ETH) | $422 billion | $3515 |
| Binance Coin (BNB) | $87 billion | $595 |
| Solana (SOL) | $66 billion | $143 |
| Ripple (XRP) | $27 billion | $0.499 |
6 more rows6 days ago
Most cryptocurrency trading commonly occurs between 8 a.m. and 4 p.m. UTC, and while the markets remain open 24/7, most trades are executed during this period. There may still be activity outside of this timing, but it will be lighter, and you could find it more challenging to open and close trades.
Data is collected, recorded, and reported in UTC time unless otherwise specified.
What does UTC mean? ›
UTC - Coordinated Universal Time.
What is the best day to buy crypto? ›
Although timing the market flawlessly may seem daunting, historical data provides intriguing insights into potential trends. Saturdays have emerged as the frontrunner, boasting an average gain of 0.364% for Bitcoin, closely followed by Tuesdays with an admirable 0.360% increase.
How to spot trade crypto? ›
Spot trading in crypto involves two parties agreeing on the price for buying or selling crypto tokens within the exchange, such as Bitcoin or Dogecoin. The current price of the cryptocurrency is called the spot price, which the traders buy and sell instantly.
What timezone is best for trading? ›
The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities. The Sydney/Tokyo markets overlap (2 a.m. to 4 a.m.) is not as volatile as the U.S./London overlap, but it still offers opportunities.
What time is most active in crypto? ›
Most cryptocurrency trading commonly occurs between 8 a.m. and 4 p.m. UTC, and while the markets remain open 24/7, most trades are executed during this period. There may still be activity outside of this timing, but it will be lighter, and you could find it more challenging to open and close trades.
What are the best time frames for crypto trading? ›
Ultimately, some traders feel most at ease trading on shorter time frames like the 1-hour chart all the way to the 1 minute chart. The former is short, but not excessively so, and still allows traders time to assess the market and make judgments without feeling rushed.
Where is the best place to day trade crypto? ›
Best Crypto Day Trading Platform: Reviewed
- PrimeXBT. PrimeXBT is a day trading platform for various assets, such as cryptocurrencies, forex, commodities, and indices. ...
- Binance. CMC Liquidity Score: 892. ...
- Gate.io. CMC Liquidity Score: 483. ...
- MEXC. CMC Liquidity Score: 608. ...
- OKX. CMC Liquidity Score: 613. ...
- Coinbase. ...
- Kraken. ...
- Crypto.com.
