Macro Pressure On U.S. Market Responsible For BTC Downtrend

Bitcoin Cryptocurrency Exchanges News Price Analysis

Since the crash of Bitcoin in December, several crypto holders have sold their BTC. As a result of these sell-offs, the prices of digital assets have dropped tremendously. 

Meanwhile, sell-offs can be assessed based on a particular region and its trading hours. Recently, macro pressure in the U.S. market has been responsible for the crypto decline.

U.S. Traders Are Responsible For Massive Sell-Offs

In the last two months, the amount of sell-offs in the crypto market has been brutal. However, the report states that most sell-offs occur during U.S. trading hours when Americans wake up.

Besides, comparing the year-to-date values during European and United States trading hours will reveal the difference. According to Arcane Research, there is a stark difference between the sell-offs in both countries. 

Currently, the year-to-date U.S. trading values have entered the negative region. It sits at about -32.55%. However, Europe has a positive year-to-date trading value of over +16%. 

Judging from this, American traders are responsible for most sell-offs in the last two months. In addition, trading hours in Asia are more favorable than in the United States.

It is primarily because of the large correlation between equities and the Bitcoin market. Apart from Americans, other traders also use macro market changes to evaluate Bitcoin risk.

Other regions also make use of the equities like S&P500 and NASDAQ. Hence, these traders use them to evaluate the risk appetite for Bitcoin. That means they might also be selling off their BTC during U.S. trading time.

Bitcoin Trading Price Recently 

Several BTC holders are currently selling off their holdings. Once trading begins in the U.S. market, the sell orders outweigh the buy orders.

These sell-offs are because the price of digital assets usually recovers early in the morning. Coincidentally, this is usually when Asian and European markets open. 

Meanwhile, the downtrends become very apparent once trading is open in the U.S. market. This shows that Bitcoin’s price drops when American traders enter the market.

As a result, these crypto trading hours serve as a buying chance for traders. In addition, most whale buys occur during such periods. Smart traders can catch in on this to execute fast gains.

The crypto market is unstable, and changes are bound to occur. However, a bullish move can occur at any time. Sell-offs can start and end almost immediately. Hence, market changes in the U.S. market can affect the upward/downward trend in the crypto market.

As of the time of writing, the trading price of Bitcoin has entered the $30,000 region again. Unfortunately, it has been doing this for days and later falling below $29,000. 

More buyers are needed in the crypto market for Bitcoin to maintain an upward trend. Besides, if more sales continue, the price may fall below the $29,000 region.

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