How does the Pacific time zone affect the volatility of cryptocurrencies?

3 answers

• Nov 23, 2021 · 3 years ago
  The Pacific time zone plays a significant role in the volatility of cryptocurrencies. Due to its geographical location, it overlaps with the trading hours of major cryptocurrency exchanges such as Binance and BYDFi. This means that when the Pacific time zone is active, there is increased trading volume and higher price movements in the cryptocurrency market. Traders and investors in this time zone have the advantage of being able to react quickly to market news and events, which can lead to increased volatility.
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• Nov 23, 2021 · 3 years ago
  The impact of the Pacific time zone on cryptocurrency volatility can be attributed to the trading activities of Asian markets. As the Pacific time zone covers countries like Japan, South Korea, and Singapore, which are known for their active participation in the cryptocurrency market, any news or events during their trading hours can have a significant impact on the overall volatility. Additionally, the time difference between the Pacific time zone and other major time zones can create arbitrage opportunities, leading to increased price fluctuations.
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• Nov 23, 2021 · 3 years ago
  From our observations at BYDFi, we have noticed that the Pacific time zone tends to experience higher volatility during the early morning hours, especially when there are major news announcements or regulatory developments in the cryptocurrency industry. This can be attributed to the fact that traders in this time zone are among the first to react to such news, leading to increased buying or selling pressure. However, it's important to note that cryptocurrency volatility is influenced by various factors, and the Pacific time zone is just one of them.
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