Bitcoin Weekend Trading Takes A Siesta: Volumes Plunge To Record Lows

Christian Encila

1 year ago

3 mins read

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Due to its constant availability, Bitcoin has been a defining feature of the cryptocurrency markets for a long time. Weekend trading has become particularly important in the cryptocurrency space, despite being a known breeding ground for volatility in the past.

But a less than ideal picture is painted by a recent report from Kaiko: BTC weekend trading volumes have dropped to all-time lows, possibly heralding in a new era controlled by institutional weekday fighters.

Bitcoin Trading Activity Takes A Nap

Kaiko’s statistics is clear-cut: weekend trading activity for bitcoin has drastically decreased, from a peak of 28% in 2019 to just 16% in 2024. This sharp decrease occurs at the same time as the eagerly awaited US debut of spot Bitcoin ETFs. Similar to stocks, these exchange-traded funds are only available for trading during regular business hours.

It is clear that institutional investors, who often support these regulated products, have an impact. According to the research, there was a spike in Bitcoin trading activity in the last hour of US stock market trading, sometimes known as the “benchmark fixing window”. This shows that institutions are forming new trading habits and giving weekdays more importance than the weekends, which were before busy.

Beyond Weekends: A Multifaceted Market Transformation

There are other factors contributing to the weekend activity reduction besides ETFs. Another factor is the shutdown of institutions that support cryptocurrencies, such as Silicon Valley Bank and Signature, in March 2023. These organisations gave market makers access to a round-the-clock infrastructure that allowed them to continuously place buy and sell orders. Their absence has reduced trading activity even more by leaving a gap in weekend liquidity.

BTCUSD trading at $63,015 on the daily chart: TradingView.com

Not everything about the shifting landscape is bad, though. The study provides investors looking for stability with a ray of hope. Because of the decreased volatility over the weekend, Bitcoin might become a more reliable investment, drawing in fresh institutional interest. Furthermore, given that seven of the previous eleven Julys had price increases for Bitcoin, historical data points to July possibly being a good month for the cryptocurrency.

Jitters On The Horizon?

Even though the weekend trading scene could be winding down, the cryptocurrency market appears to be quite volatile in the upcoming weeks. Ethereum ETFs may be approved, which could increase institutional interest and challenge Bitcoin’s hegemony.

The Road Ahead

There could be a paradigm shift in the Bitcoin market as evidenced by the declining weekend trading activity. The weekends that were previously so unpredictable may become a thing of the past, but the upcoming months are sure to be exciting.

These days, institutional investors are in the limelight, influencing new trends in trading and possibly bringing in a more stable period of time. Nonetheless, there’s a chance that this month would bring about a lot of volatility, which would put investors on edge.

Featured image from Inc. Magazine, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.