Bitcoin weekend trading volumes have plummeted to historic lows, according to a recent report by Kaiko. The data presented by Kaiko shows a significant decrease in Bitcoin weekend trading activity, dropping from 28% in 2019 to just 16% in 2024. This decline is attributed to the rise of institutional investors, who are now favoring traditional market hours over weekends for trading. With the launch of spot Bitcoin ETFs in the US, which are only available for trading during market hours, institutional involvement has become more prominent in the cryptocurrency landscape.
Institutional investors have been found to significantly influence Bitcoin trading activity, with a surge in trading observed during the “benchmark fixing window” – the final hour of US stock market trading. This shift in trading patterns indicates a clear preference for weekdays over weekends among institutional investors. The closure of crypto-friendly banks like Signature and Silicon Valley Bank in 2023 has also played a role in the decline of weekend trading activity, as these institutions provided 24/7 infrastructure for market makers.
While the decrease in weekend trading may be seen as a negative development for some, there are potential opportunities for investors seeking stability. The reduced weekend volatility could make Bitcoin a more predictable asset, potentially attracting a new wave of institutional interest. Additionally, historical trends suggest that July could be a positive month for Bitcoin, with price increases observed in seven out of the past 11 Julys. Despite the quieting down of the weekend trading scene, the coming months are expected to be turbulent for the crypto market.
The dwindling weekend trading activity in the Bitcoin market may signal a paradigm shift, with institutional investors taking the lead in shaping new trading patterns. As the approval of Ethereum ETFs looms on the horizon, further institutional involvement could impact Bitcoin’s dominance in the market. While stability is anticipated with the decrease in weekend trading, significant volatility may still be on the horizon in the coming months. Investors are advised to stay vigilant and prepared for potential market fluctuations.
