Crypto trading puts pressure on wallets to open all hours

The constant trade in cryptocurrency markets is pushing traders to work longer hours – by reversing pre-epidemic campaigns by banks and fund managers to shorten wallet time.

Since March last year, Bitcoin and other digital assets have entered the world of professional investors, with pension funds and conservative banks pursuing family offices and investing in a dangerous but rapidly growing crypto market. Last month, the Bank of America admitted that crypto currencies – now worth $ 2tn – were too big to ignore.

As these blockchain-based digital assets are closely linked to the stock and currency markets, their influence is growing. And one potential impact is on business times.

In early October, the Bermuda-based crypto and money exchange platform approved the US Securities and Exchange Commission (NEC) to conduct a national securities exchange with the intention of becoming the first platform to sell 245 shares 365. Days a week.

“Once cryptocurrency trading [became mainstream]”People are very accustomed to unlimited supply, so I believe they are expecting such a 24/7 supply for other assets,” said Dmitry Galinov, chief executive of 24 exchanges.

Bitcoin and other digital currencies are traded without interruption, with powerful computers running large data centers. Retail investors can buy and sell digital coins at any time of the day seven days a week on International Day. Conversely, stock exchanges only allow trading during the five hours of the week, and currency trading stops at the end of the week, which activates the human body in finance.

But e-commerce and foreign exchange giants Galinov are now betting that big investors will be willing to trade stocks and currencies over the weekend – a move that will make the currency markets 24/7. And extend the resilience of those involved.

“Customers ask in advance: Why can I trade Bitcoin but Tesla after trading hours or on weekends?” Says.

Are you working late?  Traders are asking why they cannot trade in the New York Stock Exchange for long periods of time.

Are you working late? Traders are asking why they can’t trade in the New York Stock Exchange for a long time © Spencer Platt / Getty Images

However, you cannot be welcomed even for long hours by professional traders who say that the current regime is punishing them.

In January last year, fund managers and banks launched a campaign to reduce European stock trading hours, saying the current 8.5-hour trading window was ineffective and anti-social. Stock exchanges disagree and reject European call for equity of working hours with Asia and US, equity traders must operate within 6.5 hours window.

But opening up for a long time is still not an agenda. A EuroNest spokesman – which operates stock exchanges in Paris, Amsterdam, Dublin, Brussels, Lisbon and Oslo – said the company had no plans to extend business hours to cover weekends.

Cboe, a global stock market operator, said the company will continue trading at 4am ET in March, starting at 7am, with the opening hours already at 4am ET.

Foreign exchange markets can move rapidly. Crypto Currency exchanges offer their retail customers a full weekend, which allows Bitcoin to trade with the dollar even when foreign exchange trading closes. That means, over the weekend, when FX markets open, crypto exchanges are exposed to a large currency market – prices may be commensurate with the speed at which they serve their clients.

“The price offered by Friday night brokers. . . Do not reflect the reality of the market, ”warns David Mercer, CEO of LX Group, Institutional FX and crypto exchanges. “As the crypto markets grow and the relationship with FX grows, crypto will continue to push traditional asset classes into innovation.”

Although the destination point is a certain path. According to the copper infrastructure provider, most cryptocurrency transactions take place during the week, with 35% of transactions taking place on weekends and afternoons.

$ 2tn

The market value of cryptocurrency

Cryptocurrency markets are more volatile than traditional markets, which explains the need for constant hours as investors often want to get out of the area immediately. In contrast, currency markets and stocks are generally more sleepy, and in addition to the dramatic developments, there are a few phenomena that regulate the exchange rate for digital coins.

Eventually, as crypto exchanges and brokers grow, their business may push large banks to extend their trading hours. Chi Nzelu, head of macro e-commerce at JPMorgan, says this is unlikely at the moment, but that digital exchanges could change if large.

“Currently, interest is limited within the institution,” he commented. “But we are always close to customers so that we can adapt when business habits and preferences change.”

This article has been modified since the first issue to fix 24 exchanges.

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