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Once-Hot Strategy of Holding Bitcoin Overnight Loses Luster

  • Buying the close, selling the open had been winning strategy
  • But the past few weeks have seen the strategy take a hit
Cryptocurrencies in the Czech Capital as Traders Assess Stablecoin Fallout
Photographer: Milan Jaros/Bloomberg
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Those who watch crypto charts closely might be familiar with the fact that a hypothetical strategy of buying Bitcoin at the close and selling it at the next open has historically netted big returns. Yet the past few weeks have seen it take a hit. 

The opposite of the so-called after-hours strategy, meaning buying the open and selling at the US market’s close, has been outperforming over the past month, according to Jake Gordon at Bespoke Investment Group. That hasn’t historically been the case, with the bulk of gains typically coming outside of regular US trading hours, a phenomenon that market-watchers have long observed and puzzled over.