Its 24/7 accessibility has made Bitcoin a staple of cryptocurrency markets. Weekend trading has become a major part of the cryptocurrency world.
However, a recent report by Kaiko reveals a not so rosy picture – BTC weekend trading volumes have plunged The number of institutional workers working on weekdays could be at a record low, possibly marking the beginning of a new age.
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Cryptocurrency Trading Activities Take a Nap
Kaiko’s data The answer is simple. Bitcoin weekend trading has dropped dramatically from 28% of all activity in 2019 down to 16% only in 2024. This rapid decline is in line with the launch of the much-anticipated spot Bitcoin ETFs. The exchange-traded fund, which mimics the stock market, is only available during regular trading hours.
Institutional investors are evidently a major influence on the market. They tend to prefer these regulated securities. This report shows a rise in Bitcoin Trade activity is a part of the trading activities. “benchmark fixing window” – the final hour of US stock market trading. The new patterns of trading suggest that institutions have shifted their focus to weekdays and away from weekends, which were once very active.
Beyond Weekends: A Multifaceted Market Transformation
It’s not just ETFs that are responsible for the decline. Another factor is the closure of crypto friendly banks such as Silicon Valley Bank and Signature in March 2023. The 24/7 availability of these institutions enabled traders to continuously place orders. The weekend trading market has been further dampened by their absence.
The changing landscape, however, is not all bad news. Investors seeking stability will find some hope in the report. Bitcoin could become more predictable due to the reduced volatility over weekends, which may attract a wave of new institutional investors. The historical trend also suggests that July may be a good month for Bitcoin. In seven of the last 11 Julys, price increases were observed.
Jitters On The Horizon
Although the weekend may have been quiet, it looks like the next few weeks will be quite turbulent in the crypto markets. Potential approval by Ethereum ETFs Bitcoin dominance could be affected by the potential for increased institutional participation and further fueled.
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What lies ahead
This potential paradigm shift is reflected in the declining weekend trading. The volatile weekends of old may be a thing of the past but the months ahead promise to bring plenty excitement.
Now, institutional investors have the spotlight. They are shaping new trading strategies and could usher in a period of increased stability. Despite this, investors will be on their toes as the month of April could see significant volatility.
Chart from TradingView, Featured Image from Inc. Magazine
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Source: www.newsbtc.com