KEY POINTS

  • It is better to buy Bitcoin every Sunday nights and Monday mornings
  • Research reveals those times give better return on investment 
  • Institutional investors are also mostly out during weekends because the CME closes on Friday and opens on Monday. 

The best time to buy Bitcoin is during Sunday nights, says Capriole digital asset manager Charles Edwards.

The data provided by Edwards, which plots the return on investment on Bitcoin bought every day, revealed Bitcoin bought during Sunday nights and Monday mornings provide the best value for every dollar used in the purchase. Edwards said the best time to buy Bitcoin is around 6:00 p.m. EDT Sunday to 8:00 a.m. EDT Monday, which is the crypto markets' weekly closing time.

One reason why it’s best to purchase Bitcoin every Sunday is because of the lower volume associated with the weekends. If the volume is lower, volatility could be higher depending on how participants would like to move the market while the majority of traders are out. This volatility encouraged pullbacks, just like what happened on Aug. 2, when Bitcoin went from $12,000 to $10,564 in 15 minutes. 

The volatility can also encourage setups to the price of Bitcoin. For example, daily volume reached 65,000 BTC on Binance last July 26. The next day, it increased to 150,000 BTC, followed by price action that put Bitcoin above $11,000 for the first time in one year, Cointelegraph reported.

Also, some exchanges, like the Chicago Mercantile Exchange, close during weekends. Traditional markets like CME are home to institutional investors. One popular indicator in the crypto industry is the "gap" in the price of Bitcoin every weekend and holiday when the CME is closed. Every time there is a gap in the price, the market would always move to fill it. If the gap is lower than the current Bitcoin price, traders might try to short the cryptocurrency. If the gap is higher, traders might try to hold or add to their long positions.

Lastly, weekends are usually when Bitcoin futures and options expire. On Aug. 2, when Bitcoin went from $12,000 to $10,564 and then back to $11,000, over $1 billion worth of futures contracts were wiped out, in addition to other liquidations. This event provides data for traders on when and how they will place their positions in the market.

Bitcoin was created in 2008 Bitcoin was created in 2008 Photo: AFP / JACK GUEZ