Research by Araken Research analysis noted that BTC’s cumulative year-on-year returns during US trading hours fell from 4.22% on April 1 to -32.55% in May.
As a result, the total sales volume for the month of April by a certain set of traders and investors between trading hours indicating the US trading session.
US Traders Sell-Off Drive
The main selling pressure on the market has almost come from US market participants, meanwhile, a group of Asian investors also contributed to the rise in digital gold.
Research report by Araken Research Analytics further suggests that the fall in bitcoin holdings of US traders led to the main selloff in April and also created huge pressure on the crypto market.
Asian cryptocurrency holders found no reason to sell off their holdings in a big way, as did their Western counterparts, and despite the large sales volume coming from the country led the sell-off drive. Similarly, European traders are also following the same as they are seeing stable trading session returns.
The market opening of digital assets in the US with bitcoin and other cryptocurrencies is increasing greatly with increasing sales volume that can be used by retail traders to exit their positions with better entries. The market can give us an indication about the behavior of the market during a trading day.
According to analysts Caleb Franzen and Cubic Analytics, factors affecting bitcoin’s price dive, “the risky asset is getting revalued as liquidity moves out of the financial system.”
Furthermore, several different market sources also believe that the depreciation of the algorithmic stablecoin TeraUSD (UST) has influenced the crypto market decline.
