Bitcoin’s Weekend Buying and selling Quantity Has Dropped to All-time Lows

• Kaiko stories BTC weekend buying and selling quantity has dropped to a 16% all-time low.
• The buying and selling quantity drop aligns with the schedule of ETF issuing firms.
• Bitcoin’s volatility drop aligns with the collapse of crypto-friendly banks in 2023.

In response to stories from the cryptocurrency analysis agency Kaiko, the proportion of Bitcoin traded over weekends has declined to an all-time low of 16% this 12 months. Kaiko’s report linked the drop to the approval of spot Bitcoin ETFs, which has skewed traders’ buying and selling behaviors to align with the schedules of the ETF issuing firms, primarily conventional fairness exchanges.

Kaiko additionally highlighted a drop in Bitcoin’s volatility, one of many unique traits of the flagship cryptocurrency. With Bitcoin buying and selling extending into the weekend, together with Saturdays and Sundays, the digital asset was famend for wild fluctuations throughout such intervals up to now. 

In response to Kaiko, Bitcoin’s weekend buying and selling quantity has dropped, falling from its 28% excessive since 2019. Regardless of following a gradual discount through the years, Bitcoin’s weekend buying and selling quantity declined swiftly this 12 months, and Kaiko’s Senior Analyst, Dessislava Aubert, blames the ETFs for this decline.

It’s value noting that the spot Bitcoin ETFs launched in January this 12 months have impacted Bitcoin considerably. BTC surged after the ETF launch, with the flagship crypto’s value rallying to a brand new all-time excessive. Regardless of making a notable retracement, the pioneer cryptocurrency continues to be up about 45% this 12 months.

Nevertheless, in contrast to different cryptos that commerce continuous, together with on weekends, spot Bitcoin ETFs comply with the buying and selling schedule of conventional shares. Therefore, no buying and selling over the weekend. Following the schedule’s implementation, Kaiko noticed that the proportion of Bitcoin traded on weekdays between 3 p.m. and 4 p.m. elevated to six.7% from 4.5% within the fourth quarter of 2023.

The analysis agency famous that the highlighted timeframe is the interval generally known as the benchmark fixing window when the homeowners of the ETFs decide the worth of Bitcoin after which use it to calculate the ETF’s internet asset worth. Kaiko additionally noticed a connection between the collapse of Silicon Valley Financial institution and Signature Financial institution in March 2023 and the drop in BTC’s weekend buying and selling quantity. I famous that market makers can now not use the banks’ uninterrupted cost networks to purchase and promote crypto in actual time.