Analysis: US trading hours become the main driver of Bitcoin bullishness

On March 21, it was reported that an analysis by Matrixport, a cryptographic service provider, showed that the hedging demand of American buyers was an important reason for the rise of Bitcoin. Markus Thielen, director of research and strategy, said Bitcoin has risen 44% since its fall on March 10th. The 31% increase was driven during US trading hours, indicating that Americans are buying Bitcoin. The pressure on American banking is not over yet.

Interpretation of this information:

The recent surge in Bitcoin’s value may be attributed to the hedging demand from American buyers, according to a report by Matrixport. The cryptographic service provider analyzed the trend and found that the 44% surge in Bitcoin’s value since March 10th was largely due to a 31% increase during US trading hours. The report claimed that this indicates that Americans are buying Bitcoin, using it as a safe haven asset to protect their wealth against inflation and currency depreciation.

The pressure on American banking also remains significant, with further uncertainty around stimulus talks and the ongoing pandemic. In times of economic hardship, people have historically been drawn towards alternative assets such as gold, and Bitcoin appears to be gaining similar popularity.

This report seems to suggest that Bitcoin is becoming increasingly recognized as a mainstream investment asset, and investors around the world are looking to it as a store of value, particularly during times of economic uncertainty. This could potentially lead to more conservative financial institutions investing in cryptocurrencies as a hedge against inflation and other economic risks.

It is important to note that while Bitcoin has been shown to be a volatile investment in the past, the recent surge could indicate a shift away from traditional investment vehicles, and towards more alternative investments, such as cryptocurrency.