Bitcoin has been a staple 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 scene.
However, a recent report from Kaiko paints a not-so-rosy picture – BTC weekend trading volumes plummeted to historic lows, potentially marking a new era dominated by institutional warriors during the week.
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Bitcoin trading activity takes a nap
Kaiko’s data It’s simple: weekend Bitcoin trading activity has shrunk drastically, falling from a high of 28% in 2019 to just 16% in 2024. This dramatic decline coincides with the highly anticipated launch of spot Bitcoin ETFs in the US. These exchange-traded funds, reflecting the behavior of stocks, can only be traded during traditional market hours.
![Bitcoin Weekend Trading Volumes Plunge to Record Lows 1 A](https://thegurumedia.com/wp-content/uploads/2024/07/A.png)
The influence of institutional investors, who tend to favor these regulated products, is evident. The report highlights an increase Bitcoin trading activity during the “benchmark setting window” – the final hour of trading in the US stock market. This suggests that institutions are shaping new trading patterns, prioritizing weekdays over the once-active weekends.
![Bitcoin Weekend Trading Volumes Plunge to Record Lows 2 A 956510](https://thegurumedia.com/wp-content/uploads/2024/07/A_956510.png)
Beyond the Weekends: A Multifaceted Market Transformation
The decline in weekend activity is not attributable to ETFs alone. The closure of crypto-friendly banks such as Signature and Silicon Valley Bank in March 2023 is another contributing factor. These institutions provided 24/7 infrastructure that allowed market makers to constantly place buy and sell orders. Its absence created a void in weekend liquidity, further damaging commercial activity.
However, the changing landscape is not all doom and gloom. The report offers a glimmer of hope for investors seeking stability. Reduced weekend volatility could make Bitcoin a more predictable asset, potentially attracting a new wave of institutional interest. Furthermore, historical trends suggest that July could be a positive month for Bitcoin, with price increases seen on seven of the last 11 Julys.
Nervousness on the horizon?
While the weekend trading scene may be calming down, the next few weeks look to be somewhat turbulent for the crypto market. The possible approval of Ethereum ETF could further fuel institutional involvement and potentially impact Bitcoin’s dominance.
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The path ahead
The decrease in trading activity over the weekend signifies a potential paradigm shift in the Bitcoin market. While once-volatile weekends may become a relic of the past, the next few months promise to be busy.
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 edge.
Featured image from Inc. Magazine, chart from TradingView