cryptodaily.co.uk: Do Cryptocurrencies Become More Volatile Over The Weekends?
Over the weekends, it seems that the cryptocurrency market becomes that little bit more volatile. Just take a look over this past weekend, the whole market seems to be bleeding red whereas, for the most part of last week, Bitcoin and a lot of altcoins were flying away close to $15k.
This is something that confuses even the most experienced of analysts, why do cryptocurrencies get volatile over Saturday and Sunday?
The cryptocurrency market is unique in that it is always switched on. Traditional markets get to rest at certain points in the day but cryptocurrencies never sleep. Most of you will have been here since the surge of crypto in 2017 and if so, you may have noticed that on the weekends, things go a bit hectic in the space.
This isn’t based on reality though. The only consistency that has been on weekends are usually a time of great volatility without any way to predict it. Over the past few months, forty percent of Bitcoin’s price gains have occurred on the weekends since May. But back in 2017, Bitcoin reached its all-time high of $20k on a Saturday in December. Maybe we’re just grasping at straws but both of these examples suggest something more than just coincidence.
The Culprit
There are several possible reasons as to the volatility for cryptocurrency at the weekends. One of them being - according to Bloomberg - that most cryptocurrency projects release news on Mondays. With this, many traders will buy in over the weekends in anticipation of a price spike during the weekday.
Furthermore, weekends are times when traders ‘regroup’ so to speak. Investors spend time discussing with colleagues or friends and family on the newest trends some of the most anticipating prospects.
Speaking on another possible reason, Be in Crypto report:
“There is generally a noticeable trading volume dip on weekends. This means that price movements are much more noticeable. According to Bloomberg Intelligence analyst Mike McGlone, much of the volume during the weekends also tend to come from Asia. “It is more Asia and those more sophisticated traders picking time and paths of least resistance to profit,” he says. It is during these ‘quieter’ trading days on Saturday and Sunday that major price movements tend to occur.”
Analysts may always be puzzled with this prospect of weekend volatility but with the market always being on, it is expected.
Additional Info
- Read full article on: cryptodaily.co.uk
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