Bitcoin, known for its 24/7 accessibility, has seen a significant decrease in weekend trading volumes according to a recent report by Kaiko. The data shows a dramatic drop from 28% in 2019 to only 16% in 2024, indicating a shift in trading patterns.
The introduction of spot Bitcoin ETFs in the US has played a role in this decline. These regulated products can only be traded during traditional market hours, leading institutional investors to prioritize weekdays over weekends for trading activities.
Impact of Crypto-Friendly Banks Closure
The closure of banks like Signature and Silicon Valley Bank, which provided 24/7 infrastructure for market makers, has also contributed to the decrease in weekend liquidity. This has further dampened trading activity during weekends.
Potential for Stability and Institutional Interest
Despite the decrease in weekend trading activity, there is a glimmer of hope for investors seeking stability. The reduced volatility during weekends could attract more institutional interest in Bitcoin, potentially shaping a new era in the cryptocurrency market.
While the weekend trading scene may be quieting down, the coming weeks could be turbulent for the crypto market. The potential approval of Ethereum ETFs could further impact Bitcoin’s dominance and increase institutional involvement, leading to potential volatility in the market.
Paradigm Shift in Bitcoin Market
The dwindling weekend trading activity signifies a potential paradigm shift in the Bitcoin market. Institutional investors are now shaping new trading patterns, which could bring about greater stability in the market.
While the decrease in weekend trading volumes may mark a new era in the cryptocurrency landscape, the future promises to be eventful. Institutional involvement and the potential approval of Ethereum ETFs could lead to increased volatility in the market, keeping investors on their toes in the coming months.
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