Due to its constant availability, Bitcoin has been a defining feature of the cryptocurrency markets for a long time. Weekend trading has become particularly important in the cryptocurrency space, despite being a known breeding ground for volatility in the past.
But a less than ideal picture is painted by a recent report from Kaiko: BTC weekend trading volumes have dropped to all-time lows, possibly heralding in a new era controlled by institutional weekday fighters.
Bitcoin Trading Activity Takes A Nap
Kaiko’s statistics is clear-cut: weekend trading activity for bitcoin has drastically decreased, from a peak of 28% in 2019 to just 16% in 2024. This sharp decrease occurs at the same time as the eagerly awaited US debut of spot Bitcoin ETFs. Similar to stocks, these exchange-traded funds are only available for trading during regular business hours.
It is clear that institutional investors, who often support these regulated products, have an impact. According to the research, there was a spike in Bitcoin trading activity in the last hour of US stock market trading, sometimes known as the “benchmark fixing window”. This shows that institutions are forming new trading habits and giving weekdays more importance than the weekends, which were before busy.
Beyond Weekends: A Multifaceted Market Transformation
There are other factors contributing to the weekend activity reduction besides ETFs. Another factor is the shutdown of institutions that support cryptocurrencies, such as Silicon Valley Bank and Signature, in March 2023. These organisations gave market makers access to a round-the-clock infrastructure that allowed them to continuously place buy and sell orders. Their absence has reduced trading activity even more by leaving a gap in weekend liquidity.
Not everything about the shifting landscape is bad, though. The study provides investors looking for stability with a ray of hope. Because of the decreased volatility over the weekend, Bitcoin might become a more reliable investment, drawing in fresh institutional interest. Furthermore, given that seven of the previous eleven Julys had price increases for Bitcoin, historical data points to July possibly being a good month for the cryptocurrency.
Jitters On The Horizon?
Even though the weekend trading scene could be winding down, the cryptocurrency market appears to be quite volatile in the upcoming weeks. Ethereum ETFs may be approved, which could increase institutional interest and challenge Bitcoin’s hegemony.
The Road Ahead
There could be a paradigm shift in the Bitcoin market as evidenced by the declining weekend trading activity. The weekends that were previously so unpredictable may become a thing of the past, but the upcoming months are sure to be exciting.
These days, institutional investors are in the limelight, influencing new trends in trading and possibly bringing in a more stable period of time. Nonetheless, there’s a chance that this month would bring about a lot of volatility, which would put investors on edge.
Featured image from Inc. Magazine, chart from TradingView