The cryptocurrency market operates 24/7 without breaks or weekends. However, despite its round-the-clock availability, #volatility (price fluctuations) of #cryptocurrencies is often influenced by the time of day and activity across various continents. Why does this happen? Let's find out.

1. Different regions — different peak hours

The global cryptocurrency market depends on trader activity in three key regions:

🌎Asia (UTC +8)

  • Active hours: 00:00 – 08:00 UTC

  • Features: high activity in China, South Korea, Japan, and Singapore. Strong price movements are often observed during this time, especially at the beginning of the Asian session.

🌎Europe (UTC +1/+2)

  • Active hours: 07:00 – 15:00 UTC

  • Features: European investors are actively reacting to news from Asia and laying the groundwork for the American session. Trading volumes are increasing.

🌎USA (UTC -5/-8)

  • Active hours: 13:00 – 22:00 UTC

  • Features: the most volatile time of day. Sharp price jumps often occur at the opening of American markets due to news, reports, or actions of major players.

2. ⚡️Session overlap — spike in volatility

The largest price fluctuations usually occur during periods when trading sessions overlap:

  • Europe + USA (13:00–15:00 UTC) — maximum trading volumes, key movements of the day are often formed.

  • Asia + Europe (07:00–08:00 UTC) — increased activity before Europe opens.

3. 🌙Night calm

In the intervals between active sessions (for example, between 22:00 and 00:00 UTC), the market often becomes less volatile, with reduced volumes. This can be a period of 'calm before the storm' or a time for position accumulation.

4. 🤖Algorithms and bots

Automated trading also plays its role. Many trading bots are tuned to specific patterns related to the time of day. They can amplify movements at certain hours, especially during low liquidity.

5. 🆕News and events

News and economic events are often published during US working hours 🇺🇸. This makes the American session especially sensitive to external triggers: regulatory reports, economic indicators, statements from the Fed, etc.

Conclusion

Although the #cryptomarket is open 24 hours a day, activity and volatility are uneven. Understanding how the time of day and geography of participants influence market movements can help traders make more informed decisions, choose the best times to enter and exit trades, and reduce risks.