Why do bitcoin prices tend to rise significantly while US traders are not active in the market?

8 answers

• Dec 28, 2021 · 3 years ago
  One possible reason for the rise in bitcoin prices when US traders are not active could be due to increased demand from traders in other countries. While US traders may not be actively participating, traders from other regions may be entering the market and driving up demand for bitcoin. This increased demand can lead to higher prices as the supply of bitcoin remains relatively constant.
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• Dec 28, 2021 · 3 years ago
  Another factor that could contribute to the rise in bitcoin prices during periods of low US trader activity is the influence of news and events in other parts of the world. Bitcoin is a global currency, and news of positive developments or regulatory changes in other countries can create a sense of optimism and attract investors from around the world. This influx of new investors can push up the price of bitcoin, even when US traders are not actively trading.
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• Dec 28, 2021 · 3 years ago
  Well, let me tell you a little secret. At BYDFi, we've noticed that during times when US traders are not as active, there tends to be a higher level of speculative trading in the market. Speculators, who are often looking to profit from short-term price movements, can drive up the price of bitcoin through their trading activities. This increased speculation can create a sense of FOMO (fear of missing out) among other traders, leading to a further increase in demand and prices.
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• Dec 28, 2021 · 3 years ago
  While it's true that US traders play a significant role in the cryptocurrency market, they are not the sole driving force behind price movements. The global nature of bitcoin means that it is influenced by a variety of factors, including market sentiment, technological advancements, and macroeconomic trends. Therefore, even when US traders are not actively participating, other factors can still contribute to the rise in bitcoin prices.
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• Dec 28, 2021 · 3 years ago
  It's important to note that the rise in bitcoin prices during periods of low US trader activity is not always guaranteed. Market conditions can vary, and there are instances where bitcoin prices may not experience significant increases when US traders are not active. It's crucial to consider the overall market dynamics and the interplay of various factors when analyzing price movements in the cryptocurrency market.
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• Dec 28, 2021 · 3 years ago
  While the absence of US traders may have some impact on bitcoin prices, it's essential to remember that the cryptocurrency market is highly globalized. Traders from all over the world, including Europe, Asia, and other regions, actively participate in bitcoin trading. Therefore, the influence of US traders alone may not be the sole determinant of price movements. Other factors, such as market sentiment, investor behavior, and external events, can also contribute to the rise in bitcoin prices during periods of low US trader activity.
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• Dec 28, 2021 · 3 years ago
  The rise in bitcoin prices when US traders are not active can also be attributed to the nature of the cryptocurrency market itself. Bitcoin is known for its volatility, and price fluctuations are not uncommon. During periods of low US trader activity, the market may be more susceptible to price manipulation by large holders or whales. These whales can strategically buy or sell large amounts of bitcoin to create artificial price movements, leading to a temporary increase in prices.
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• Dec 28, 2021 · 3 years ago
  In conclusion, the rise in bitcoin prices during periods of low US trader activity can be influenced by various factors, including increased demand from traders in other countries, positive news and events in other parts of the world, speculative trading, global market dynamics, and the nature of the cryptocurrency market. It's important to consider the broader context and multiple factors when analyzing price movements in the bitcoin market.
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