Bitcoin’s Weekend Trading-Sharply Drops to Historic Lows in 2024

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Bitcoin’s Wild Weekends May Be Over as Trading Volumes slumps to Historic Lows

Bitcoin Trading Volumes Hit Record Lows After ETF Launch in 2024

In 2024, Bitcoin’s trading has changed a lot. Weekend trading is at an all-time low. Data shows that the launch of ETFs caused this drop. June was a wild month for Bitcoin, with its price soaring close to record highs before crashing to $59,000. Even though this seems very unstable, Kaiko’s latest report says Bitcoin has been more stable throughout the year.

Bitcoin’s Weekend Trading Volumes Plummet After ETF Launch

Bitcoin trading has changed a lot over the past year. Weekend trading used to make up 28% of all Bitcoin activity. Now, it has dropped to just 16%. Kaiko’s data shows this big drop in weekend trading.

In its report, the crypto research firm explained why Bitcoin trading has dropped. One big reason is the launch of spot ETFs in the US this year.

Even though people can trade cryptocurrency anytime, ETF trading only happens on weekdays when the stock market is open. Since late 2023, when people expected these ETFs to start, Kaiko researchers noticed more Bitcoin trading in the last hour of market trading, from 3 to 4 pm New York time.

Since the launch of spot Bitcoin ETFs, this last hour of trading has become the second most popular time to trade Bitcoin, making up over 6.7% of all trading this year. Meanwhile, weekend trading has kept dropping since 2021 and is now at its lowest point ever.

Crypto-Bank Closures Contribute to Decline in Weekend Trading Volumes

Kaiko also explained that another reason for less action on weekends could be the closing of crypto-friendly banks like Signature and Silicon Valley in March 2023. These banks used to support trading all week long, making it easy for traders to buy and sell cryptocurrencies anytime. But since they closed, traders have been less willing to trade when fewer people are trading, like on weekends.

July Promises Change Amid Bitcoin Trading Shift

Bitcoin prepares for an Important July

July is expected to be a busy month for the crypto market, with events that could shake things up. These include the possible approval of Ethereum ETFs, a potential rise in altcoin activity, and nearly $730 million worth of tokens becoming available.

Bitcoin holders will be watching closely, especially as Mt. Gox users start selling their assets. Starting July 1, the trustee overseeing Mt. Gox’s rehabilitation plans to distribute $9 billion in assets, including 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen. If these assets are sold off, Bitcoin prices could face significant pressure.

Adding to the uncertainty, the FOMC meeting at the end of July could bring more volatility. Many are waiting to see if the FOMC will announce a rate cut, which could be the first in two years. This meeting is also the last chance before the November elections for the FOMC to fulfil its promise of a rate cut.

Looking at the Other Side

  1. Historical data reveals that Bitcoin’s price has gone up in seven out of the last eleven Julys.
  2. Three of Bitcoin’s highest prices ever happened on Wednesdays.

Why This is Important

Bitcoin trading on weekends is at its lowest ever, which could lead traders to change how they trade. With less ups and downs, Bitcoin might become easier to predict and trade.

reference: CoinMarketCap

Disclaimer: The information presented here is based on historical data and market trends and does not necessarily reflect the views or opinions of Actual trading volumes and market conditions can fluctuate. It is advisable to conduct thorough research or seek advice from a financial advisor before making any investment decisions.