Bitcoin Weekend Trading Volumes Plunge To Record Lows

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

Nevertheless, a recent report by Kaiko reveals a not so rosy picture – BTC weekend trading volumes have plunged to historic lows, potentially marking a recent era dominated by institutional weekday warriors.

Bitcoin Trading Activity Takes A Nap

Kaiko’s data is simple: Bitcoin weekend trading activity has shrunk dramatically, dropping from a high of 28% in 2019 to a mere 16% in 2024. This dramatic decline coincides with the highly anticipated launch of spot Bitcoin ETFs within the US. These exchange-traded funds, mirroring the behavior of stocks, can only be traded during traditional market hours.

Source: Kaiko

The influence of institutional investors, who are inclined to favor these regulated products, is obvious. The report highlights a surge in Bitcoin trading activity in the course of the “benchmark fixing window” – the ultimate hour of US stock market trading. This means institutions are shaping recent trading patterns, prioritizing weekdays over the once-active weekends.

Source: Kaiko

Beyond Weekends: A Multifaceted Market Transformation

The decline in weekend activity isn’t solely attributable to ETFs. The closure of crypto-friendly banks like Signature and Silicon Valley Bank in March 2023 is one other contributing factor. These institutions provided 24/7 infrastructure that enabled market makers to continually place buy and sell orders. Their absence has created a void in weekend liquidity, further dampening trading activity.

BTCUSD trading at $63,015 on the every day chart: TradingView.com

Nevertheless, the changing landscape isn’t all doom and gloom. The report offers a glimmer of hope for investors in search of stability. The reduced weekend volatility could make Bitcoin a more predictable asset, potentially attracting a recent wave of institutional interest. Moreover, the historical trend suggests July could possibly be a positive month for Bitcoin, with price increases observed in seven out of the past 11 Julys.

Jitters On The Horizon?

While the weekend trading scene could also be quieting down, the approaching 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.