The entire Bitcoin downtrend is due to macroeconomic pressures in the United States.
Since the fall in December 2021, there have been many sell-off patterns in bitcoin. The drop in prices of the digital asset over the previous several months has been attributed to these sell-offs. Naturally, sell-off patterns may be measured in terms of size depending on when a region’s trading hours are open. This time, it appears that macro pressure on the US stock market is to blame. The sell-off over the last two months has been particularly harsh, dragging year-to-date prices down. However, it appears that the majority of the sell-offs in the United States have occurred during daytime trading hours. This may be seen by comparing the year-to-date numbers during US trade hours to the European year-to-date value. The sharp difference reveals where the majority of the sell-off took place.
Year-to-date values during U.S. trade hours have now fallen into the negative territory. It has a year-to-date value of -32.55 percent, while its European counterpart has a year-to-date value of +16 percent. This indicates that the majority of the sell-off over the last two months has come from American traders. This is even in contrast to Asian trading hours, which have better year-to-date worth than the United States. The tremendous correlation between bitcoin and the stock market over the last two months has made this clear. It’s also worth noting that US traders aren’t the only ones that use the macro markets to evaluate their bitcoin risk. Because traders in other locations use equities markets like the NASDAQ and the S& P500 to measure their risk appetite, they might be selling bitcoin during US trading hours.
Recently, it has been clear that there are a number of sell-offs taking place as the US markets start for trade. The fact that the price of the digital asset tends to rebound during the early hours of the morning when the European and Asian markets are open, demonstrates this. When the US markets open for the day, however, the downtrends are generally visible. At the time of writing, the digital asset’s price had risen past $30,000 in the early hours of Wednesday. If the sell-off continues, bitcoin’s price may go below this level by the end of the day.