Yes, you might be wondering about the trading strategy of Bitcoin which is not working anymore. Purchasing at such close & selling at open may also no longer be the great viable strategy of trading, as per the latest survey and report. Also, majority of the BTC gains from the pandemic-era were basically outside the regular hours of trading.
There are some of the traders that have started taking benefits related to the strategy. It also has seemingly now become the prophecy that is quite self-fulfilling. Mainly who will buy the Bitcoin at close of the stock market and then may buy at open. This will give a profit or gain of almost 270%. This may also be well explained by high level related to the correlation between the US equities as well as cryptocurrencies.
Bitcoin – Risk on the Asset!
As the BTC acts like risk-on asset, this may also come as not any surprise that the price action will depend on stock market. Here, the assets also react in a similar way to changes in macro environment. For specific set of instance, BTC as well equities sold off subsequent to latest CPI. It known as the consumer price index and the update surprised to upside. Hence, this has signaling more hike on the rate.
Strategy that is not working anymore
On the other hand, Jake Gordon from the group of Bespoke Investment. It has also noticed that strategy of time-tested is not working now. Also, for last month, those where you buy open from the US stock market as well as sell the close basically has netted high level of gains.
Also, over the last some of the weeks, the entire Bitcoin industry has been hit through the deluge of not-so-great news. It related to the downfall of some of the prominent companies.