Bitcoin, once known for its 24/7 accessibility and weekend trading volatility, is experiencing a significant shift in trading patterns. According to a recent report by Kaiko, weekend trading volumes for BTC have plummeted to historic lows, dropping from 28% in 2019 to a mere 16% in 2024. This decline is attributed to the rise of institutional investors, who are favoring regulated products like spot Bitcoin ETFs that can only be traded during traditional market hours.
The launch of spot Bitcoin ETFs in the US has played a crucial role in reshaping the cryptocurrency market. Institutional investors, drawn to the regulated nature of these products, have been driving trading activity towards weekdays. The report highlights a surge in Bitcoin trading during the US stock market’s “benchmark fixing window,” indicating a clear shift in trading behavior.
While ETFs have been a major catalyst for the decline in weekend trading, other factors have also played a role. The closure of crypto-friendly banks like Signature and Silicon Valley Bank in 2023 has further impacted weekend liquidity by eliminating 24/7 infrastructure for market makers. This absence has led to diminished trading activity during weekends, reinforcing the trend towards weekday domination.
Despite the decrease in weekend trading activity, there are silver linings for investors. The reduced volatility during weekends could make Bitcoin a more stable asset, appealing to a new wave of institutional interest. Moreover, historical data suggests that July has historically been a positive month for Bitcoin, with price increases observed in the majority of past Julys.
Looking ahead, the cryptocurrency market is poised for further changes. The potential approval of Ethereum ETFs could drive greater institutional involvement and impact Bitcoin’s market dominance. While weekends may no longer be as active as before, the coming months are expected to be turbulent, with institutional investors shaping new trading patterns and potentially ushering in a period of increased stability. However, significant volatility may still be on the horizon, keeping investors on high alert for potential market fluctuations.
The decline of Bitcoin weekend trading signifies a broader shift towards institutional dominance and a more regulated market environment. While the weekends may no longer be the volatile trading grounds they once were, the evolving landscape presents both challenges and opportunities for investors in the cryptocurrency space.
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