- Bitcoin (BTC) has become less volatile on weekends compared to previous years.
- A recent study by Kaiko indicates that Bitcoin’s weekend trading volume has significantly decreased over time.
- Back in 2019, 28% of Bitcoin’s total trading volume was recorded over weekends, whereas this figure has now dropped to 16%.
Discover why Bitcoin trading volume has significantly reduced on weekends and how market developments influence this trend.
The Impact of Bitcoin ETFs on Trading Volume
Kaiko researchers attribute one of the main reasons for the decline in weekend trading volume to the proliferation of spot Bitcoin ETFs in the United States. While global crypto investors can trade 24/7, ETFs are restricted to trading hours of traditional stock exchanges. According to Kaiko’s data, one of the most active trading periods for Bitcoin recently has been between 3:00 PM and 4:00 PM New York time.
Weekend Trading Activity Reduction
According to Kaiko, Bitcoin’s weekend trading volume has been decreasing since 2021, now hitting historically low levels. Several factors contribute to this trend, including the closure of Signature and Silicon Valley banks, which previously facilitated large-scale crypto transactions around the clock. With these banks out of the picture, market makers have scaled back their activities in the cryptocurrency market, affecting overall trading volumes during the weekends.
Conclusion
In summary, the significant drop in Bitcoin’s weekend trading volumes can be largely attributed to the increased adoption of Bitcoin ETFs and the shutting down of pivotal banking services that supported 24/7 crypto transactions. These developments indicate a shift in trading behaviors and highlight the evolving dynamics of the cryptocurrency market. As the landscape changes, investors and analysts alike will need to adjust their strategies and outlook accordingly.
