The world of cryptocurrency has long been marked by the 24/7 accessibility of assets like Bitcoin. However, recent data provided by Kaiko paints a different picture of the weekend trading scene for the popular digital currency.
The report reveals a significant drop in Bitcoin weekend trading activity, plummeting from 28% in 2019 to only 16% in 2024. This decline is attributed to the rise of institutional investors dominating the market during weekdays.
With the introduction of spot Bitcoin ETFs, which can only be traded during traditional market hours, institutions have been steering the market towards a more regulated space. This is evident in the increase of Bitcoin trading activity during the final hour of US stock market trading.
The closure of crypto-friendly banks like Signature and Silicon Valley Bank in 2023 has contributed to the decrease in weekend trading activity. These institutions provided crucial 24/7 infrastructure for market makers, creating a void in weekend liquidity.
Despite the decline in weekend trading, there is hope for stability in the Bitcoin market. The reduced volatility during weekends could attract more institutional interest, potentially shaping a new era in Bitcoin trading. The historical trend also indicates a positive outlook for Bitcoin, especially in July.
While weekends may no longer be the volatile breeding ground they once were, the future of Bitcoin trading remains uncertain. The potential approval of Ethereum ETFs could further impact the market, bringing both stability and volatility to the forefront. Institutional investors are poised to play a significant role in shaping the future of Bitcoin trading.
The decline in Bitcoin weekend trading volumes signifies a potential paradigm shift in the market. While institutional investors may be taking the spotlight, the coming months are sure to bring both stability and volatility to the crypto market. Investors should brace themselves for an eventful journey ahead.
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