OPINION: Traditional Markets Are Dominating Cryptocurrency Price Action, ETF Trading Time Limits May Exacerbate Opening Session Volatility

Frank Chaparro, Director of Special Projects at The Block, provides market insight that traditional market forces are dominating cryptocurrency price action with the launch of the Spot Bitcoin ETF, Gold Finance reports. the crypto market was highly correlated with the Nasdaq following the release of U.S. jobs data on January 12, underscoring the far-reaching impact of macroeconomics on the market. According to Greg Guttas, Analyst at Flowdesk, the mismatch between the ETF's trading time limit of 6.5 hours per day and the 24/7 trading attributes of cryptocurrencies could exacerbate volatility in the opening hours. While the crypto industry faces favorable factors, such as an improved regulatory environment and increased banking sector participation, current market sentiment suggests that these benefits may be difficult to offset the pressures of macroeconomic headwinds.