Bitcoin, once known for its active weekend trading, is now experiencing a significant decline in weekend trading volumes, according to a recent report by Kaiko. The data reveals a sharp drop in weekend trading activity, from 28% in 2019 to a meager 16% in 2024. This shift can be attributed to the rise of institutional investors who prioritize trading on weekdays, especially with the launch of spot Bitcoin ETFs in the US. These ETFs, only open during traditional market hours, have influenced new trading patterns in the cryptocurrency market.
The report underscores the increasing influence of institutional investors in shaping the cryptocurrency market. With the closure of crypto-friendly banks like Signature and Silicon Valley Bank in 2023, the infrastructure that once supported 24/7 trading activity has disappeared. This has led to a void in weekend liquidity, further contributing to the decline in weekend trading volume. The presence of institutional investors is evident during the “benchmark fixing window,” indicating a shift towards more regulated trading practices.
Despite the downturn in weekend trading activity, there is optimism for the future of Bitcoin as an asset. The reduced weekend volatility could attract a new wave of institutional interest, seeking stability in their investments. Furthermore, historical trends suggest a positive outlook for Bitcoin in July, with price increases observed in the past. However, the approval of Ethereum ETFs could introduce further volatility and impact Bitcoin’s dominance in the market.
The decline in Bitcoin weekend trading signifies a potential paradigm shift in the cryptocurrency market. While weekends may no longer be as volatile as before, the coming months are expected to be eventful. Institutional investors are taking center stage in shaping new trading patterns, potentially leading to greater market stability. However, the month ahead could still bring significant volatility, keeping investors on edge as they navigate the evolving landscape of the cryptocurrency market.