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Bitcoin Price Performs While Traditional Stocks Can’t: Price Rises 40% Outside Regular Trading Hours

Last Updated April 5, 2024 1:18 PM
Shraddha Sharma
Last Updated April 5, 2024 1:18 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • After-hours trading sees a 40% rise in Bitcoin price since the launch of Bitcoin ETFs.
  • Regular trading hours contrast with quieter movements, pointing to investor influence.
  • A CREBACO report finds that the long-term investor outlook remains optimistic despite short-term volatility.

Bitcoin’s trading pattern has revealed that a 40% price increase has occurred outside of regular trading hours. This shift highlights the unique market dynamics of cryptocurrency trading, where after-hours movements can significantly impact overall price trends.

Bitcoin’s After-Hours Surge

Equity markets operate during set business hours, but the cryptocurrency market operates round the clock. Bloomberg analyst Eric Balchunas  noted in a post the disparity between Bitcoin’s intra-day and after-hours price movements. BlackRock’s IBIT data indicates that much of Bitcoin’s price increase has happened when traditional markets are closed, with major gaps formed between the close and open prices in the US market.

Generally, after-hours trading volumes are typically lower than regular trading hours in the traditional markets. In Bitcoin’s case, a smaller number of trades could be causing larger price swings, indicating the influence of institutional investors. Additionally, large volumes might be coming from non-US investors and/or non-ETF investors.

The launch of Bitcoin ETFs in January 2024 marked the beginning of a bull run due to the influx of more liquidity. Since then, the price of Bitcoin has soared.

At press time, Bitcoin flirts with the $67,000 mark suggesting some market weakness after the all-time high levels.

Institutional Confidence and Market Resilience

According to CREBACO research shared with CCN, institutional investments have been strong, indicating a deep-seated trust in Bitcoin’s long-term value.

The crypto research company emphasizes that while short-lived dips may occur, they are unlikely to derail Bitcoin’s bullish trajectory. For traders, this means maintaining a level head.

As per CREBACO, institutional inflows surged to around $1 billion by mid-March. The report said: “As we analyze the data, it becomes evident that the overall trend in institutional investments for March was characterized by resilience and growth.”

CREBACO expects March optimism to remain steady in April. However, it finds some headwinds with open interest in BTC/USDT contracts decreasing. There has been a reduction of 10% since the start of April. The decline, coupled with minor liquidations and a dip in the funding rate, suggests a tilt toward sellers in Bitcoin perpetual contracts.

However, Bitcoin halving is a positive. As per the report, further corrections are likely to remain within the 15% to 20% range. CREBACO research states that resilience is a bullish signal, indicating that Bitcoin is primed to explore fresh record highs.

Bitcoin’s Bullish Trajectory

With after-hours trading spikes and institutional activity, the overarching narrative remains bullish for Bitcoin. The general consensus among long-term investors is one of optimism.

As Bitcoin navigates through its upcoming halving, the anticipation of heightened market activity presents opportunities for strategic positioning in April.

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