Bitcoin’s recent drop below $80,000 has triggered a wave of sleep disturbances across the retail trading community, according to a new report from CEX.io.
The flagship digital asset has since recovered to around $88,000, but a drawdown of around 31% from its recent peak has left many investors watching the price overnight.
This behavior goes beyond simple anxiety, with almost 70% of traders surveyed believing that lack of sleep was the direct cause of execution errors or “bad trades,” creating a scenario where physical fatigue exacerbates portfolio losses.
late night surveillance
CEX.io’s research pointed to a notable change in behavior, with 68% of respondents saying they check prices almost every night or after bedtime, and only 8% saying they never check them.
This pattern highlights how market fluctuations are affecting daily life and nighttime habits.
Furthermore, this data suggests that sleep deprivation is becoming the norm in crypto trading.
According to the report, more than half of those surveyed said they stay up until at least 2 a.m. to watch the market move, and a further 33 percent said they stay up until 4 a.m. or later. A total of 81% reported losing sleep while waiting for a favorable setup or important event.
On the other hand, the psychological factors behind this behavior indicate that markets are increasingly driven by emotion rather than technical analysis.
The main cause of insomnia is not fear of liquidation, but fear of missing out (FOMO), cited by 59% of respondents.
This is consistent with research showing that sleep quality is closely related to market direction. In bull markets, 64% slept well, compared to just 10% in bear markets.
BTC overnight volatility
CEX.io argued that this insomnia was due to changes in the timing of volatility, rather than just a price reaction.
Citing data from Blockworks Research, the firm said the most volatile price movements have shifted to the night-time window.
The data shows the highest volatility clustering realized between 18:00 and 06:00 UTC. This schedule coincides with the thinning of institutional order books as U.S. liquidity providers go offline.
As a result, market depth is reduced during the Asia-Pacific crossover period, with relatively small order flows causing abnormal movements.
For retail traders in the EMEA time zone, this volatility window directly coincides with rest periods, forcing them to choose between sleep and active risk management.
(Tag translation) Bitcoin
