U.S. Macro Pressure Responsible For Entire Bitcoin Downtrend


There have been multiple selling trends recorded in bitcoin since the crash in December 2021. These selloffs have been responsible for the lower prices recorded in the digital asset over the past two months. Of course, selling trends can be recorded by their volume depending on when trading hours open in a particular region. This time around, the overall pressure on the US market appears to have been the cause.

US traders lead selling

The sell-off in the past two months has been particularly brutal and has led to lower year-to-date values. However, most of the selling appears to have taken place during US daytime trading hours. This is illustrated by looking at the year-to-date values ​​during US trading hours compared to the European year-to-date value. The stark contrast reveals where most of the selling took place.

Related reading | Bullish: Bitcoin marks first green weekly close in two months in the red

As it stands now, year-to-date values ​​during US trading hours have fallen to negative. It sits at -32.55% while its European counterpart looks at positive YTD values ​​at +16%. What this shows is that the selling over the past couple of months has mainly originated from US traders. This is even compared to the Asian trading hours which also show a better year-to-date value compared to the US

US bitcoin trading hours

BTC sell-offs intensify during U.S. trading hours | Source: Arcane Research

Mostly, this is evident due to the significant correlation between Bitcoin and the stock market over the past couple of months. It is also good to note that US traders are not the only ones who use macro markets to assess their risk in Bitcoin. Since traders in other regions also use stock markets like the NASDAQ and S&P500 as a way to assess their risk appetite, they may also dump bitcoin during US trading hours.

Bitcoin during trading hours

Lately, it has been evident that there was a lot of selling out once the US markets opened up for trading. This is evident in the fact that the price of the digital asset tends to recover during the early hours of the morning while the European and Asian markets are open. However, once the US markets open for the day, bearish trends usually appear.

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This puts Bitcoin’s current weak point during the times when US traders are active. As such, these trading hours can provide a buying opportunity for interested parties, and even a means to execute quick short runs for quick wins.

Bitcoin price chart from TradingView.com

BTC recovers ahead of U.S. trading day | Source: BTCUSD on TradingView.com

However, it is important to note that the tide can change at any time. Sales often come to a halt when they begin. Therefore, a change in trend during US hours can affect short-term plays that cater to selling in 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 selling trends continue, the bitcoin price may drop below this level before the day ends.

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

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