Bitcoin has long been a hallmark of the cryptocurrency markets, blossoming on its 24/7 availability. Weekend trading, once a notorious hotbed of volatility, has been particularly significant in the cryptocurrency landscape.
However, a recent report from Kaiko paints a not-so-rosy picture – BTC Trading volumes fell sharply over the weekend to historic lows, potentially marking a up-to-date era dominated by institutional weekday warriors.
Bitcoin trading activity is taking a nap
Kaiko data is straightforward: weekend Bitcoin trading activity has dropped dramatically, from a high of 28% in 2019 to just 16% in 2024. This dramatic drop coincides with the long-awaited launch of Bitcoin cash ETFs in the US. These exchange-traded funds, which reflect the performance of stocks, can only be traded during time-honored market hours.
The influence of institutional investors who tend to favor these regulated products is obvious. The report highlights growth Bitcoin trading activity during the “benchmark setting window” – the last hour of trading on the US stock exchange. This suggests that institutions are shaping up-to-date trading patterns, prioritizing weekdays over once-active weekends.
Beyond weekends: multi-faceted market transformation
The decline in weekend activity is not solely due to ETFs. The closure of cryptocurrency-friendly banks like 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 created a weekend liquidity gap, which further dampened trading activity.
However, the changing landscape is not all doom and gloom. The report gives a ray of hope to investors looking for stability. Reduced weekend volatility could make Bitcoin a more predictable asset, potentially attracting a up-to-date wave of institutional interest. Additionally, the historical trend suggests that July could be a positive month for Bitcoin, with price increases seen on seven of the last July 11s.
Is there concern on the horizon?
While the weekend trading scene may serene down, the coming weeks will be a bit turbulent for the cryptocurrency market. Potential acceptance Ethereum ETFs could further boost institutional involvement and potentially influence Bitcoin’s dominance.
The road lies ahead
Withering weekend trading activity signals a potential paradigm shift for 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 up-to-date trading patterns and potentially ushering in an era of greater stability. However, this month could still introduce significant volatility, keeping investors on their toes.
Featured image from Inc. Magazine, chart from TradingView
