Bitcoin Weekend Trading Volumes Plunge to Historic Lows, Marking a New Era Dominated by Institutional Weekday Warriors

Bitcoin has long been a hallmark of the cryptocurrency markets, thriving on its 24/7 accessibility. Weekend trading, once a notorious breeding ground for volatility, has been especially significant in the cryptocurrency landscape.

Bitcoin weekend trading volumes have hit historic lows, according to a recent report by Kaiko. The decline coincides with the launch of spot Bitcoin ETFs in the US and a shift in trading activity towards the “benchmark fixing window” at the end of the US stock market trading day.

The closure of crypto-friendly banks like Signature and Silicon Valley Bank in March 2023 has also contributed to the reduced weekend liquidity. However, the report suggests that the lower weekend volatility could make Bitcoin a more predictable asset.

Key Points:

Bitcoin weekend trading volumes have plunged to historic lows, as reported by Kaiko.

The decline coincides with the launch of spot Bitcoin ETFs in the US and a shift in trading activity towards the “benchmark fixing window” at the end of the US stock market trading day.

The closure of crypto-friendly banks like Signature and Silicon Valley Bank in March 2023 has also contributed to the reduced weekend liquidity.

However, the report suggests that the lower weekend volatility could make Bitcoin a more predictable asset, potentially attracting a new wave of institutional interest.

Bitcoin weekend trading volumes have hit historic lows, according to a recent report by Kaiko. The decline comes as institutional investors favor these volumes during traditional market hours.

In 2019, BTC weekend trading activity reached a high of 28%, but this figure has since dropped to 16% in 2024. This dramatic decrease is coinciding with the highly anticipated launch of spot Bitcoin ETFs in the US. These exchange-traded funds mirror the behavior of stocks and can only be traded during traditional market hours.

The influence of institutional investors, who tend to favor these regulated products, is becoming increasingly evident. The report highlights a surge in Bitcoin trading activity during the “benchmark fixing window” – the final hour of US stock market trading. This activity suggests that institutions are shaping new trading patterns, prioritizing weekdays over the once-active weekends.

But beyond weekends, the report offers a broader perspective on the multi-faceted market transformation underway. The closure of crypto-friendly banks like Signature and SVB in March 2023 is another factor contributing to the decline in weekend activity.

These institutions played a crucial role in enabling market makers to constantly place buy and sell orders, providing 24/7 infrastructure for the markets. Their absence has created a void in weekend liquidity, further dampening trading activity.

However, not all is lost in the changing landscape. The report offers a glimmer of hope for investors seeking stability. The reduced weekend volatility could make Bitcoin a more predictable asset, potentially attracting a new wave of institutional interest.

Moreover, the historical trend suggests that July could be a positive month for Bitcoin, with price increases observed in seven out of the past 11 Julys.

While the weekend trading scene may be quieting down, the coming weeks look to be somewhat turbulent for the crypto market. The potential approval of Ethereum ETFs could further fuel institutional involvement and potentially impact Bitcoin’s dominance.

To summarize, Bitcoin weekend trading activity has declined significantly due to the launch of spot Bitcoin ETFs, a shift in institutional trading patterns, and the closure of crypto-friendly banks. However, this reduced weekend volatility could potentially make Bitcoin a more stable asset.

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