Tick-tock, next block: What time does the crypto market close?

Financial markets appear to always be in a frenetic flux. While digital platforms have made trading more accessible, bankers and brokers still adhere to specific schedules, with assets like stocks following strict trading hours and banking transfers requiring time to process. But how do these traditional time constraints apply to the cryptocurrency market? Does the crypto market close? And if so, when? Spoiler alert: It doesn’t.

Read on to learn more about the crypto market’s 24/7 schedule and how this unique feature impacts trading strategies and risk management.

What time do crypto markets reset? Cryptocurrency trade hours explained

In short, never.

Cryptocurrencies differ from stocks in more than just their decentralized nature – they also operate continuously. As long as the internet is accessible, digital assets can be transferred between wallets, exchanges, and decentralized applications (dApps) without the time constraints imposed by traditional markets. This pauseless access creates more opportunities for traders, like taking advantage of arbitrage opportunities across different platforms or reacting quickly to news events. It also presents challenges, such as increased exposure to market volatility during off-peak hours when fewer traders are active.

Traditional assets like stocks and ETFs, however, are restricted to specific hours on centralized exchanges like the New York Stock Exchange (NYSE). When these markets close, trading activity halts, leaving traders to wait until the next session opens. 

Why does the crypto market never close? 

Cryptocurrencies leverage blockchain technology to record transactions without intermediaries like banks. As digital assets, they don’t require physical exchanges or brokers. Instead, assets like Bitcoin (BTC) use distributed ledgers – peer-to-peer (P2P) networks that maintain public, transparent records of transactions. These ledgers operate autonomously through algorithms, removing the need for human oversight and bypassing time constraints.

Is there a time when cryptocurrencies are more actively traded?

Crypto traders can swap coins anytime, but data shows activity tends to increase during U.S. and European stock market hours, particularly when the NYSE is open. Institutional liquidity from investment firms and hedge funds often drives demand during these times.

While trading volumes vary throughout the day, there's a notable correlation between activity in Western stock markets and crypto markets. Investors seeking greater volatility and liquidity tend to focus their trading between 9:30 a.m. and 4 p.m. EST, aligning with major stock exchange hours.

How to evaluate crypto trading activity 

While crypto trading volumes often peak during the NYSE's trading hours, there's no guarantee activity will always surge during this period. Remember, you can trade cryptocurrency on weekends, and news or events can impact the market at any hour. To objectively assess market activity, traders rely on various metrics to gauge the current demand for digital assets:

Volume levels

Displayed at the bottom of a cryptocurrency's price chart, volume bars indicate the amount of trading activity for a digital asset within a given timeframe. This indicator provides insight into the intensity of buying or selling, offering a snapshot of market participation. By comparing current volume levels to historical averages, traders can identify correlations, trends, or unusual activity.

Onchain analysis

Transactions on public blockchains are transparent. Since all activity on decentralized networks like Bitcoin and Ethereum (ETH) is recorded on distributed ledgers, traders can analyze these records to gain insights into market behavior. By examining onchain metrics such as wallet numbers, transaction volumes, and active addresses, traders can better understand market activity at any given time.

Market depth

Similar to volume bars, market depth highlights demand dynamics in the crypto market but focuses on the number of buyers and sellers with open positions at specific prices. Reviewing order sizes on crypto exchanges helps traders understand market liquidity and the number of participants ready to act on price opportunities.

Derivatives activity

Monitoring open positions on crypto derivatives platforms adds valuable information about market participation. While derivatives don't provide direct access to underlying assets, the activity on these contracts reveals insights into investor sentiment and the current level of market engagement.

Pros and cons of the crypto market's trading hours 

24/7 trading makes crypto swaps convenient, but it also puts significant pressure on traders. Crypto investors must account for the complexities of round-the-clock trading hours when shaping their strategies.

Pros 

• Constant availability: Investors can move their digital assets anytime. Whether adjusting portfolios, sending funds, or engaging with decentralized finance (DeFi), crypto markets are always open.
• Greater accessibility: Unlike traditional markets where insiders have privileged access (e.g., after-hours or pre-IPO fundraising), the crypto market is fully accessible. Anyone with a trading platform can make transactions at any time.
• Potentially improved liquidity: Constant trading potentially improves global capital circulation and increases liquidity. A continuous flow of supply and demand may narrow the gap between bid and ask prices, simplifying entry and exit.

Cons

• Risk of impulsive decisions: Without downtime or circuit breakers, the crypto market is prone to emotion-driven trading. Traders often fall victim to "fear of missing out" (FOMO) or sell out of "fear, uncertainty, and doubt" (FUD), leading to heightened volatility.
• High stress: Traditional trading is already high-stress; adding 24/7 access increases burnout risks. Many traders struggle to disconnect, fearing missed opportunities or sudden market declines.
• Overtrading risk: Without restrictions on trading activity, it’s tough to resist the urge to enter multiple trades to exploit short-term opportunities. Although there’s potentially more time to profit from the crypto market’s moves, traders might end up paying for costly errors or higher transaction fees. 

How do crypto traders manage a 24/7 market? 

The crypto market never takes a break, but there are tools and strategies that make managing this nonstop environment possible. Even while on vacation, investors can use various methods to keep track of their positions.

Identify price levels, goals, and risk tolerance 

Developing clear expectations helps traders make quick, precise decisions. Analyzing fundamentals and technical indicators allows traders to create a strategy aligned with their goals and adjust their positions accordingly.

Use limit orders

Unlike market orders, limit orders only execute at a preset price, giving traders control over entry and exit points. Variations like stop-loss and take-profit orders further automate strategies, managing risk and securing gains even when traders are offline.

Explore automated trading algorithms

Trading bots execute trades based on preset coding instructions, enabling continuous market participation. These bots allow traders to capitalize on opportunities without being active in the market at all times.

Consider a portfolio tracker app

Managing a diversified portfolio across multiple exchanges and DeFi platforms can be challenging. Portfolio trackers consolidate information, providing real-time overviews of positions and net worth. Many apps also offer push notifications and price alerts, helping traders stay informed without constantly monitoring the market.

CoinTracker’s Crypto portfolio tracker never sleeps 

Need real-time updates on your cryptocurrency positions? CoinTracker has you covered. By linking your crypto wallets and exchange APIs to CoinTracker's platform, you can effortlessly monitor your portfolio’s performance anytime. CoinTracker automatically tracks transfers and captures DeFi activities like staking, liquidity pools, and lending, ensuring you have a complete picture of your crypto holdings and accurate tax reports.

Create a free CoinTracker account and see why millions of crypto investors trust our platform for portfolio management and tax reporting.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.