Bitcoin has long been a hallmark of the cryptocurrency markets and thrives on its 24/7 accessibility. Once a notorious breeding ground for volatility, weekend trading has been especially important in the cryptocurrency landscape.
However, a recent report from Kaiko reveals a not so rosy picture: BTC Weekend trading volumes have fallen to an all-time low, potentially marking a new era dominated by institutional weekday warriors.
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Bitcoin trading activity is taking a nap
Kaiko’s data is clear: weekend Bitcoin trading activity has shrunk dramatically, from a high of 28% in 2019 to just 16% in 2024. This dramatic drop coincides with the long-awaited launch of spot Bitcoin ETFs in the US. These exchange-traded funds, which mirror the behavior of stocks, can only trade during traditional market hours.
The influence of institutional investors, who generally prefer these regulated products, is evident. The report points to an increase in numbers Bitcoin trading activity during the ‘benchmark fixing window’ – the last hour of trading in the US stock market. This suggests that institutions are shaping new trading patterns, prioritizing weekdays over the once active weekends.
Beyond Weekends: a multifaceted market transformation
The decline in weekend activity cannot be attributed solely to ETFs. The closure of crypto-friendly banks such as Signature and Silicon Valley Bank in March 2023 is another contributing factor. These institutions provided a 24/7 infrastructure that allowed market makers to continuously place buy and sell orders. Their absence has created a void in weekend liquidity, further dampening trading activity.
However, the changing landscape is not all doom and gloom. The report offers a glimmer of hope for investors looking for stability. The reduced volatility over the weekend could make Bitcoin a more predictable asset, potentially attracting a new wave of institutional interest. Furthermore, the historical trend suggests that July could be a positive month for Bitcoin, with price increases observed in seven of the past 11 Julys.
Jitters on the horizon?
While the trading scene may calm down over the weekend, the coming weeks look to be somewhat turbulent for the crypto market. The possible adoption of Ethereum ETFs could further fuel institutional involvement and potentially impact Bitcoin’s dominance.
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The road ahead
The decline in weekend trading activity marks a potential paradigm shift in the Bitcoin market. While the once fleeting 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 bring significant volatility, keeping investors on the edge of their seats.
Featured image of Inc. Magazine, chart from TradingView