- As the United States prepares for the Memorial Day holiday on May 27, the crypto market remains active.
- While traditional financial markets will be closed, cryptocurrency trading will continue uninterrupted.
- This article highlights three key trends to watch in the crypto market during the Memorial Day weekend.
Discover the key trends in the crypto market during the US Memorial Day weekend and how they could impact your investments.
Crypto Market Designed For Round the Clock Trading
While the legacy financial markets are closed for the US Memorial Day, the crypto industry will remain active. Since its inception or the launch of Bitcoin, the coin has always served traders over the weekends and during holidays.
The design of blockchain-enabled transactions makes this possible. By eliminating the intermediaries, transactions can settle directly on-chain. The crypto ecosystem has an active group of independently operating miners or validators that confirm transactions round the clock. The consensus model of each protocol determines whether it employs miners or validators respectively.
The crypto market is also active throughout because of its adopted model of incentivizing users for confirming transactions. This reward scheme keeps the market highly structured and self-sustaining. With the US Memorial Day here, here are the three key trends to keep eyes on:
Increased Volatility
The market is bound to experience intense volatility as will be shown in the prices of each digital currency. With the influx of capital – from both crypto holders and TradFi experts, the trading volumes of cryptos are likely to record a visible uptick. This is also translated into prices.
Another intense volatility might be recorded in the Derivatives Market for most crypto. In all, a good percentage of the capital that will flow into the market might originate from the mainstream market and they risk being pulled out when the stock market opens on Tuesday.
Bitcoin Slump To Taper Down
For many that have been following the digital currency ecosystem, it will be confirmed that most assets led by Bitcoin fall over the weekend. However, this weekend, there might be a change in direction. Rather than the usual slump that drags the prices of the other altcoins down, the coin may print some resilience to chart a different course.
At the time of writing, Bitcoin is already changing hands for $69,118.10, up 3.06% in the past 24 hours.
CME Gap To Widen More
One other key trend to keep eyes on is the disparity the US Memorial Day will have on the crypto CME Gap. The CME Gap is the difference between the closing price of Bitcoin Futures at the close of trading on the Chicago Mercantile Exchange on Friday with the opening price on Sunday evening.
With the elongated weekend, the gap may be widened, impacting the market pricing in the coming week.
Conclusion
As the US observes Memorial Day, the crypto market’s continuous operation highlights its unique characteristics compared to traditional financial markets. Investors should be prepared for increased volatility, potential shifts in Bitcoin’s usual weekend patterns, and a widening CME Gap. These trends offer both opportunities and risks, underscoring the importance of staying informed and vigilant in the dynamic world of cryptocurrency trading.
