Unlike traditional financial markets like the stock market which have set trading hours, the cryptocurrency market is open and trading 24/7. This is because cryptocurrency trading occurs on a global peer-to-peer network that never sleeps. However, trading volume and volatility tend to follow certain patterns tied to peak hours in different time zones. Here we’ll cover the busiest trading times for top cryptocurrencies like Bitcoin and Ethereum and explore the concept of when the crypto market “resets” each day.
Peak Trading Times
While crypto trades non-stop, there are certainly busier times for trading volume. This tends to correlate with business hours in certain regions as well as times of market-moving news or events.
Asia-Pacific Region
Some of the largest cryptocurrency exchanges are located in the Asia-Pacific region, like Huobi and OKEx, based in China. Major financial hubs like Singapore, Hong Kong, and Tokyo also see high crypto trading volume. So the Asian session tends to drive significant volume and volatility, especially for top coins like Bitcoin and Ethereum.
The busiest times for Asian crypto trading are from 12:00-16:00 China Standard Time. This correlates from 21:00-01:00 UTC. So expect lots of action during the Asian afternoon, which bleeds into the evening hours in Europe. Price action and trends established during this window frequently set the tone for the entire day.
Europe/Middle East Session
European trading then picks up the baton as Asian trading dwindles. Top European exchanges like Bitstamp and Coinbase see growing volumes as the workday kicks off. Trading activity overlaps with the Middle East during this session as well. The busiest times tend to be 8:00-16:00 Central European Time, which corresponds to 07:00-15:00 UTC.
The lunch hours and afternoon during the European session tend to see high volatility and volume, with price action and trends continuing established from the Asian session. So this zone defines the trading day for most cryptocurrencies.
North American Session
As the European session winds down, the North American session then takes over to drive trading, volatility, and price discovery heading into the Wall Street open. North America is home to large crypto exchanges like Kraken and Gemini. Leading Bitcoin trading volumes consistently come from the United States.
The busiest North American session tends to run from 12:00-20:00 Eastern Standard Time, which syncs up with 16:00-00:00 UTC. There tends to be a midday lull before afternoon volatility spikes heading into and after Wall Street cash equities close. The Sunday evening open often sees gap-ups or gap-downs from weekend news and events.
When Does the Crypto Market Reset?
The concept of a market “reset” comes from traditional markets which have regular trading sessions that close and clear overnight. This creates definitive opens and closes for each trading day. But as we know, the crypto market is 24 hours, so when does the trading day reset?
There may be no definitive answer, but a strong case can be made that the crypto markets “reset” around 00:00 UTC each day. This syncs up with early trading in Asia, the 8 pm close for cash equities trading in North America, as well as the close of the CME Bitcoin futures market. It’s a logical point where volumes tend to die down and new trends can establish headed into the next 24-hour cycle.
Looking at historical data, 00:00 UTC tends to be an inflection point for breakouts and breakdowns as well as volatility expansion and compression each day in crypto markets. There are often swift moves around this reset point that set the tone for the next day’s price action. Traders can observe common opening gaps as Asian markets fire up for a new day. So while the crypto market never sleeps, there is some evidence of a functional daily reset around 00:00 UTC.
Key Takeaways:
So in summary, the crypto markets have no official market close each day. But by analyzing volume profiles and volatility by time zone, we can attribute a loose daily reset to 00:00 UTC as Asian markets open. Keep the hourly trading nuances and tendencies across time zones in mind as you trade Bitcoin, Ethereum, and other top cryptocurrencies.
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