ZUBR published a report about bitcoin volatility that analyzes seven years of data showing that there are major regional differences in trading behavior between Asia and the US: during US trading hours, daily highs led to higher pricing the following day (average 67% year-on-year). In Asia, pricing fell the following day 72% of the time.
ZUBR is a digital assets derivatives trading platform for hedge funds, HFT traders and other parties who bear cryptocurrency price exposure risks as a part of their operational activity. Currently in beta, it’s due to launch in the first quarter of 2020.
Additional key findings from the research paper include:
- Despite around the clock trading, with some exchanges appealing to certain regions more than others, volumes by region as a percentage of the annual total is linear across major trading venues. This means time zones don’t matter when there is a trading opportunity.
- If the price of bitcoin hits a high during Asian trading hours, there are increased arbitrage opportunities.
- Price movements (in USD) and arbitrage opportunities (daily fluctuations) are fairly even on an annual basis. This means traders will need to utilize both long and short positions equally.
Ilgar Alekperov, CEO of ZUBR, said in a statement: “While the market remains orderly, a key observation is how the East and West’s high staying power is almost polar opposite. We believe this indicates a fundamental belief shift in US movements when bull markets start stateside, compared with Asia.”