Macroeconomic pressures in the U.S responsible for the Bitcoin downtrend

Since the December 2021 meltdown, there have been several sell-off patterns in bitcoin. These sell-offs have been responsible for the digital asset’s price fall during the last few months. Naturally, sell-off tendencies can be noted based on their magnitude depending on when a given region’s trading hours are open. This time, it appears that macroeconomic pressures on the US market are to blame.

US traders are driving the sell-offs

The sell-offs over the last two months have been particularly rough, dragging down year-to-date values. However, it appears that the majority of the sell-offs have occurred during the daylight trading hours in the United States. Looking at the year-to-date figures during U.S. trade hours in the United States demonstrates this. This is evident when comparing year-to-date values during US trading hours to those during European trading hours. The sharp difference reveals where the majority of the sell-offs occurred.

The year-to-date values during US trade hours have now fallen into the negative. It currently stands at -32.55 %, while its European counterpart has a positive year-to-date value of +16%. This demonstrates that the sell-off over the last two months has primarily come from American traders. This is even in comparison to Asian trading hours, which have better year-to-date worth than the US.

This is primarily due to the significant correlation between bitcoin and the stock market during the last two months. It is also worth noting that American traders are not the only ones that use macroeconomic indicators to estimate their risk in bitcoin. Since traders in other locations utilize equities markets such as the NASDAQ and S&P500 to measure their risk appetite, they may also be selling bitcoin during US trading hours during Bitcoin Trading Hours.

Recently, it has been clear that there have been a number of sell-offs taking place whenever the US markets open for trading. This is evidenced by the fact that the price of the digital asset tends to recover in the early morning hours when the European and Asian markets are open. However, once the markets in the United States open for the day, the downtrends are usually visible.

This places bitcoin’s present weak point during times when American traders are active. As a result, these trading hours may provide a buying opportunity for those interested, as well as a method to execute quick short-term trades for quick returns.
It is crucial to note, however, that the tide can turn at any time. Sell-offs can frequently come to an abrupt halt. As a result, a shift in the trend during US hours can have an impact on short-term strategies that cater to trading-hour sell-offs.

At the time of writing, the digital asset’s price had returned above R462 016 in the early hours of Thursday. If the current sell-off trend continues, the price of bitcoin may fall below this level by the end of the day.

Macroeconomic pressures in the U.S responsible for the Bitcoin downtrend

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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