Cryptocurrency Trading Finds Rhythm in 15-Minute Pulses
Researchers Chan Kim and Peter Reinhard Hansen discovered a unique pattern in cryptocurrency trading, where a brief burst of activity occurs every quarter-hour. The study analyzed data from six Binance futures markets, including Bitcoin, Ethereum, XRP, Solana, Dogecoin, and Cardano, over a period of 1,400 full days. The researchers found that during the first ten seconds after each quarter-hour mark (15:00:00, 15:30:00, 15:45:00), trading volume and price movement increased significantly.
The study showed that during these brief bursts, there were 26% more trades and 32% more dollar volume than in ordinary minutes. Additionally, the absolute returns (price movements) were 26% larger. The researchers also found a significant decrease in round quantities during these moments, which they attribute to automated trading activity.
The study's findings suggest that this pattern is not unique to any particular token or exchange, but rather is a shared convention among trading systems. This means that even though the market appears continuous, it has been divided into tiny sessions by software used for trading. The researchers also ran checks to rule out other recurring events as the cause of the pulse.