Buying at closes and selling at openings may no longer be a viable trading strategy, according to a recent report by Bloomberg. It is also stated at this point that most of the gains during the pandemic period in Bitcoin were made outside of normal trading hours. It is stated that many investors also benefit from this strategy.
It is stated that investors who buy at closings and sell at openings make a profit of approximately 270%, and in fact, it is stated that this can be explained by the high level of correlation between currencies and US stocks. Analysts say that "since Bitcoin behaves like a risky asset, it is not surprising that price action is heavily dependent on the stock market."
Additionally, both entities react similarly to changes in the macro environment. For example, after the last consumer price index (CPI) update, we have seen Bitcoin and stocks react to the upside. The leading cryptocurrency Bitcoin has risen above $22,000, which is seen as an important level today.
Jake Gordon of Bespoke Investment Group said in a recent statement that the time-tested strategy is no longer working. According to Gordon's statements, during the last month, it is stated that those who buy when the US stock markets open and sell when they close make more profit.
In his statements regarding the reason for this, Gordon expressed that he believes it may be related to the fact that the news cycle in the after-hours market has become more intense lately. As you know, in the past weeks, there have been noticeable regressions in the market with a few negative news, both Terra, Celsius and Three Arrows Capital. In addition, analysts say that every strategy may not work all the time and it is very important to follow the trend and working strategies in order to gain profits in the market.