Study Finds Bitcoin’s Most Volatile from Midnight to 1 A.M. (UTC) (2024)

FAQs

Study Finds Bitcoin’s Most Volatile from Midnight to 1 A.M. (UTC)? ›

Data recorded over the past two years shows that bitcoin's price was most volatile between midnight and 1 am UTC or Coordinated Universal Time. This was according to findings from Crypto Data Download, a crypto analytics company based in the US. The reason? Geography.

Crypto traders have long debated the best time to trade cryptocurrencies. According to data from on-chain data provider Skew, 3 - 4 PM UTC is when cryptocurrency trading is most intense.

The influence of media and news on investor sentiment cannot be overstated. Positive news can lead to hype, driving up prices, while negative news can trigger panic selling. This cycle of news and investor reaction contributes to the high volatility seen in Bitcoin trading.

UTC (or Coordinated Universal Time) is the primary time standard by which clocks and time are regulated. Since cryptocurrencies operate 24/7, unlike most financial exchanges, it means that the world of crypto basically runs on UTC.

Prices are lower when the market is less busy. Although you can trade cryptocurrencies at any time of day, the market is more active during typical work hours and less active early in the morning, at night, and on the weekends. Generally, cryptocurrency prices start low on Monday and rise throughout the week.

The two most volatile hours are hour 15 (15:00-15:59) and hour 16 (16:00-16:59). The average volatility during these hours is currently 0,38% en 0,43% respectively. If the DOW is around 24.000, for example, this means the DOW moves on average 103 points during the 16th hour.

A reasonable assumption that Bitcoin could hypothetically reach the null state of it's value is worth the thought. Even-though such an event is very less likely to take place, there are some factors that could theoretically lead to Bitcoin price crashing to zero.

Bitcoin took a sharp tumble on Saturday amid a frightening uptick in geopolitical tensions. Following news that Iran's fundamentalist rulers had launched a massive air attack on Israel, the price fell from around $70,000 to $62,000—a more than 10% drop—while some altcoins plunged 15% or more.

The nature of bitcoin volatility

This nascent nature means that bitcoin is still in a price discovery phase, where its true value is being continuously assessed by the market, leading to large price swings as new information and developments come to light.

What is the best cheap crypto to buy right now? ›

– The best crypto to buy right now includes PlayDoge, Dogeverse, Sealana, Wiener AI, Mega Dice, and 99Bitcoins, among others.

Universal Trade Capture (UTC) is a service that validates and reports equity transactions that are submitted to NSCC by an exchange or by Qualified Special Representatives (QSRs) that is an NSCC Member.

Prior to 1972, this time was called Greenwich Mean Time (GMT) but is now referred to as Coordinated Universal Time or Universal Time Coordinated (UTC). It is a coordinated time scale, maintained by the Bureau International des Poids et Mesures (BIPM). It is also known as "Z time" or "Zulu Time".

00 UTC or 00Z is midnight Greenwich time. Translating this to your time zone depends on where you live. Below is a table that provides some UTC times and their conversion to the 4 main time zones over the lower 48 for standard time.

Cryptocurrencies are most commonly traded between 8am to 4pm in local time. While the crypto market is 24/7, your trades are more likely to be executed when there is the highest level of activity. Outside of these hours, when trading is lighter, it can be more difficult to open and close trades.

A market's peak trading hours is typically 8 a.m. to 4 p.m. in its local time. These are the trading hours that usually drive the highest trade volume in each region.

Mondays are associated with higher returns and volatility in Bitcoin prices. Attention to Bitcoin varies significantly across weekdays. This effect has evolved along with the gradual recognition of Bitcoin worldwide.

Bitcoin's all-time high was $73,835.57, which it reached on March 14, 2024. How much is 1BTC? One BTC represents one bitcoin currently valued at $72,926.37. While global central banks often increase the supply of fiat currencies like the U.S. dollar, the supply of bitcoin is capped at 21 million BTC.