Bitcoin Weekend Trading Takes A Siesta: Volumes Plunge To Record Lows
July 01 2024 - 5:40AM
NEWSBTC
Bitcoin has long been a hallmark of the cryptocurrency markets,
thriving on its 24/7 accessibility. Weekend trading, once a
notorious breeding ground for volatility, has been especially
significant in the cryptocurrency landscape. However, a recent
report by Kaiko reveals a not so rosy picture – BTC weekend trading
volumes have plunged to historic lows, potentially marking a new
era dominated by institutional weekday warriors. Related Reading:
Ethereum ETF Dream On Hold: SEC Thumbs Down Applications (Again)
Bitcoin Trading Activity Takes A Nap Kaiko’s data is
straightforward: Bitcoin weekend trading activity has shrunk
dramatically, dropping from a high of 28% in 2019 to a mere 16% in
2024. This dramatic decline coincides with the highly anticipated
launch of spot Bitcoin ETFs in the US. These exchange-traded funds,
mirroring the behavior of stocks, can only be traded during
traditional market hours. The influence of institutional investors,
who tend to favor these regulated products, is evident. The report
highlights a surge in Bitcoin trading activity during the
“benchmark fixing window” – the final hour of US stock market
trading. This suggests institutions are shaping new trading
patterns, prioritizing weekdays over the once-active weekends.
Beyond Weekends: A Multifaceted Market Transformation The decline
in weekend activity isn’t solely attributable to ETFs. The closure
of crypto-friendly banks like Signature and Silicon Valley Bank in
March 2023 is another contributing factor. These institutions
provided 24/7 infrastructure that enabled market makers to
constantly place buy and sell orders. Their absence has created a
void in weekend liquidity, further dampening trading activity.
However, the changing landscape isn’t all doom and gloom. The
report offers a glimmer of hope for investors seeking stability.
The reduced weekend volatility could make Bitcoin a more
predictable asset, potentially attracting a new wave of
institutional interest. Additionally, the historical trend suggests
July could be a positive month for Bitcoin, with price increases
observed in seven out of the past 11 Julys. Jitters On The Horizon?
While the weekend trading scene may be quieting down, the coming
weeks look to be somewhat turbulent for the crypto market. The
potential approval of Ethereum ETFs could further fuel
institutional involvement and potentially impact Bitcoin’s
dominance. Related Reading: Solana Poised For Epic Reversal?
Analyst Spots Bullish Pattern Echoing 2022 Breakout The Road Ahead
The dwindling weekend trading activity signifies a potential
paradigm shift in the Bitcoin market. While the once-volatile
weekends may become a relic of the past, the coming months promise
to be eventful. Institutional investors are now in the spotlight,
shaping new trading patterns and potentially ushering in an era of
greater stability. However, this month could still introduce
significant volatility, keeping investors on the edge of their
seats. Featured image from Inc. Magazine, chart from TradingView
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