Bitcoin, known for its accessibility and round-the-clock trading, has seen a significant shift in weekend trading volumes according to a recent report by Kaiko. This change in behavior may signal the beginning of a new era dominated by institutional investors during traditional market hours.
The Decline in Weekend Trading
Kaiko’s data reveals a sharp decline in Bitcoin weekend trading activity, dropping from 28% in 2019 to only 16% in 2024. This decrease is attributed to the launch of spot Bitcoin ETFs in the US, which can only be traded during regular market hours, attracting institutional investors who favor regulated products.
The report highlights the surge in Bitcoin trading activity during the final hour of US stock market trading, indicating a shift towards weekday trading. This trend, coupled with the closure of crypto-friendly banks like Signature and Silicon Valley Bank, has further decreased weekend liquidity and trading activity.
Potential Opportunities
While the decline in weekend trading may seem concerning, there are potential benefits for investors. The reduced volatility could make Bitcoin a more stable asset, appealing to institutional interest. Additionally, historical trends suggest positive price movements in July, further attracting investors to the market.
As the landscape of Bitcoin trading evolves, the approval of Ethereum ETFs could impact Bitcoin’s dominance and spur increased institutional involvement. The dwindling weekend trading activity marks a potential paradigm shift in the market, with institutional investors shaping new trading patterns and introducing greater stability.
While the weekend trading scene may be quieter, the upcoming months are expected to be eventful for the crypto market. Institutional investors are playing a more significant role, setting the stage for a new era of trading habits and potential market stability. However, volatility may still be present, requiring investors to stay vigilant.
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