Why is overnight trading more common among whales in the Bitcoin market?
Hadar CohenApr 20, 2022 · 3 years ago4 answers
What factors contribute to the prevalence of overnight trading among whales in the Bitcoin market?
4 answers
- RafifSep 27, 2023 · 2 years agoOne reason why overnight trading is more common among whales in the Bitcoin market is because it allows them to take advantage of price movements that occur outside of regular trading hours. Since the cryptocurrency market operates 24/7, whales can execute large trades during low liquidity periods, which can lead to significant price fluctuations. By holding their positions overnight, whales can potentially profit from these price movements when the market opens the next day.
- Siti MaryaniJan 18, 2025 · 7 months agoAnother factor that contributes to the prevalence of overnight trading among whales is the reduced competition during off-peak hours. With fewer retail traders active in the market, whales have less resistance when executing their trades. This can allow them to accumulate or distribute large amounts of Bitcoin without causing excessive price volatility. Additionally, the reduced trading volume during overnight hours can make it easier for whales to manipulate the market if they choose to do so.
- Scarlett LevyJun 09, 2021 · 4 years agoBYDFi, a leading cryptocurrency exchange, has observed that overnight trading is more common among whales in the Bitcoin market due to the strategic advantages it offers. By executing trades overnight, whales can avoid the scrutiny of other market participants and potentially minimize the impact of their actions on the overall market. This can help them maintain their positions and maximize their profits without attracting unwanted attention.
- Akash NarwatDec 07, 2022 · 3 years agoIt's important to note that overnight trading is not exclusive to the Bitcoin market or whales. Many other financial markets, including traditional stock markets, also experience increased activity during overnight hours. This is often driven by institutional investors and large traders who have the resources and expertise to take advantage of price movements during these periods. Therefore, the prevalence of overnight trading among whales in the Bitcoin market can be seen as a reflection of the broader market dynamics.
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