The Surprising Volatility of Bitcoin: Why 1 AM UTC is the Hotspot for Traders

Unpacking the Findings from LongHash

Researchers at crypto analytics powerhouse LongHash have unearthed a curious fact: 1 AM UTC is the hour when Bitcoin (BTC) sees the most volatility. How did they come to this conclusion? Through rigorous analysis of Bitcoin’s price movements over the past two years. According to their released findings, this particular hour has experienced more daily highs and lows compared to any other hour in the day between 2017 and 2019.

The Data Dive: Understanding the Methodology

LongHash’s diligent research was based on extensive data from major American crypto exchange and wallet service, Coinbase. They sifted through date ranges from July 6, 2017, to July 2, 2019, to scrutinize hourly high and low price changes. By comparing the activity of each hour to the other 23, the firm identified 1 AM UTC as the standout.

What Makes 1 AM UTC So Special?

So, what’s causing all this hullabaloo at 1 AM UTC? According to LongHash, it’s all about the overlap of trading hours between Asia and North America. During this magical hour, Western traders are waking up from their slumber, while their Asian counterparts are already knee-deep in market reactions to the latest news. It’s the perfect storm of trading activity, leading to heightened volatility.

Key Reasons Behind the Chaos

• Cross-Continental Trading: This time frame coincides with the start of the workday in Asia and the winding down of the evening in North America.
• Market Reactions: Traders in Asia absorb news while North American traders are still active, leading to swift price adjustments.

Market Impacts: What’s Happening with Bitcoin?

In other news, Bitcoin recently managed to reclaim its $10,000 support after a minor drop below this psychological threshold on July 16. This just goes to show the immediate repercussions of volatility during such critical hours. Traders who are on their game during 1 AM UTC stand to benefit significantly—or experience heartbreak—depending on the direction of the swings.

Conclusion: Time is of the Essence

As LongHash’s study illustrates, timing your trades with the global market clock can truly make a difference in the volatile world of cryptocurrency. If you’re serious about your BTC investments, keeping an eye on the clock—specifically around 1 AM UTC—might just help you ride the waves of Bitcoin’s notorious ups and downs more successfully.