Believe it or not, the supposedly best time to invest in cryptocurrencies is the time when the United States (US) stock market is closed.
This was presented by an expert at Bespoke Investment Group, Jake Gordon who stated the time between 4pm in New York until 9.30am the next day, yields a profit of 270% in 2020.
According to him, after the closing time covers a longer period that allows any news or catalysts to be taken into account before investors can start crypto trading.
Clearly, the rate of movement of the value of Bitcoin (BTC) was found to be higher on the weekend when the stock market closed and its daily movement decreased when the trading session began.
This has led to the expert hypothesis that cryptocurrencies are sensitive to movements in U.S. equities and both are in the spectrum of risky assets.
For linguists, cryptocurrencies and equities move in tandem where if one of them rises the other will soar.
Citing an example when the Federal Reserve (Fed) acted to raise interest rates to ease inflation, the S&P 500 rose 0.2% on the evening of June 6 and at the same time the BTC added 4.5% to trade at $ 31,280 or RM137,538.16.
It indirectly leads to a correlation by Gordon who states the best time to invest in crypto is when the equity market is not moving.
