The American market is flexing its muscle in the world of Bitcoin. A recent study by Kaiko Research shows that the share of Bitcoin volume traded during US market hours has hit an all-time high, accounting for a whopping 46% of the total volume for the year so far (through April 2024). This surge suggests a growing appetite for Bitcoin among US investors.


Analysts point to the launch of spot-Bitcoin exchange-traded funds (ETFs) in January as a potential catalyst for this increased activity. These ETFs, which track the price of Bitcoin, seem to be influencing trading patterns. The study found that trading volume spikes near the opening and closing bells of US stock exchanges. This aligns with the daily calculation of net asset value for these ETFs, which could be attracting arbitrage traders seeking to capitalize on price discrepancies.

Interestingly, Thursdays appear to be the most popular day for US Bitcoin trading, with nearly 15% of the weekly volume occurring during those hours. This trend further strengthens the connection to the ETF market, as many ETFs rebalance their holdings at the end of the week.

The influx of US dollars is proving to be a boon for the Bitcoin market.

The spot-Bitcoin ETFs have attracted almost $13 billion in net inflows since their debut, marking a historic launch for the cryptocurrency industry. However, recent data suggests a slight cooling in demand, with inflows slowing down to $925 million in May.

Looking ahead, the regulatory landscape in the US remains a key factor for Bitcoin’s future. The approval of spot-Ether ETFs, which track the price of Ethereum (the second-largest cryptocurrency), is on the horizon. A positive decision by the Securities and Exchange Commission could trigger another wave of US investor interest in the crypto market.

While Bitcoin’s price volatility during US market hours seems to be decreasing compared to the past, its overall correlation with the traditional stock market (like the S&P) is a topic of ongoing discussion. The long-term impact of US market dominance on Bitcoin’s relationship with other cryptocurrencies remains to be seen.


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