Weekend Bitcoin Trading Trends
According to analysts at blockchain market data provider Kaiko, a recent blog post highlights a significant shift in Bitcoin trading behavior on weekends. The analysis reveals that weekend trading has significantly decreased over the years. This year, only 13% of all Bitcoin transactions occurred during the weekend, compared to 17% last year and 24% in 2018. The decline is more pronounced in offshore exchanges, where weekend trading volumes dropped from 27% to 15% over the same period. Onshore markets also experienced a decline, with trading during weekends falling from 21% to 11%. The data suggests that retail investors have been more active in weekend trading historically, as opposed to institutional investors.
Impact of Institutional Participation
Kaiko’s analysis further indicates that the recent approval and influx of institutional money into Bitcoin through spot Bitcoin exchange-traded funds (ETFs) have reshaped the cryptocurrency market. Notably, the implementation of spot Bitcoin ETF trading by the US Securities and Exchange Commission (SEC) has attracted billions in institutional investments, leading to a more structured and regulated trading environment. As a result, Bitcoin’s trading behavior has become more aligned with traditional financial markets, with a decrease in weekend trading activities observed. This shift signifies a maturation of the cryptocurrency market as it integrates with conventional finance.
