BIT Blog

Analysts' Insights

Analysts' Insights

Who dominates Crypto trading?

👇 1) Buying Ethereum seems to be more of a buy-and-hold and a yield play while Bitcoin appears to be an inflation and liquidity play. This is why Ethereum is being bought during Asia hours and Bitcoin is being bought during US trading hours.

👇 2) If the flows that we are seeing continue, then Asia will eclipse the US time as the most important buying zone in 2023.

👇 3) Year-to-date, Bitcoin is up +79% with nearly half of those returns coming from the US trading time zone. The US influence has now watered down from accounting for 80% earlier in the year.

👇 4) Asia is now catching up and had almost eclipsed the US buying before Bitcoin jumped 8% during the last two days. This is because Bitcoin is predominantly a liquidity and inflation-sensitive asset.

👇 5) For example, March 10 will be associated with crypto’s most pivotal liquidity date in 2023. When the idea of a U.S. nationwide bank deposit insurance was floated after Silvergate, Silicon Valley Bank, and Signature Bank all went under, Bitcoin had a parabolic move higher.

👇 6) This event had similar consequences as when Cyprus bailed in depositors and Bitcoin had its second strongest quarter with +569% returns in Q1 2013.

👇 7) This date is also when pricing for further rate hikes has changed to a more dovish stance as the Fed’s poorly communicated and unpredictable rate decisions caused many inexperienced bond investors to sit on billions of losses. While US CPI data releases have so far been extremely bullish Bitcoin, the market will have slowly priced this in and needs to find another narrative.

👇 8) Asia is becoming the Steady Eddy of the crypto world. While 45% of this year’s Bitcoin returns were generated during US trading hours, Asia is now catching up with gradual buying and accounts for 27%.

👇 9) Interestingly, Ethereum is up +60% with 36% of those returns coming from Asia hours and only 23% from the US trading zone. Europe is with 7% for Bitcoin and 1% for Ethereum in no man’s land.

👇 10) Smaller assets like Solana are fully in control of traders in Asia with practically all of Solana’s YtD +135% returns coming from trading during the Asia time zone (+132%). IF these trends continue then Asia will be more important in terms of flows and crypto discovery than any other region. But this also means that BITCOIN will start to underperform the alt-coin universe.

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