Weekend Movement in Bitcoin | Trading Volume Drops as Institutional Money Takes the Lead
Edited By
Tomislav Novak
Bitcoin's weekends appear increasingly uneventful. Recent comments on forums reveal that trading volume can drop by 10-15% on Saturdays. This shift raises questions about the influence of traditional finance (tradfi) entities like ETFs on Bitcoin's market activity.
The Weekend Effect
Every weekend, the crypto market seems a bit quieter. Observers note that institutional players often aren't active, leading to diminished trading volume. One user commented, "The weekend effect has become more pronounced since institutional money started flowing in,” emphasizing that pre-2021 weekends could be volatile due to retail trading.
Major players hold significant Bitcoin and their inactivity during weekends causes retail trading, which has little impact.
Key Observations from the Community
Lower Weekend Activity: As stated in user comments, Bitcoin volume was down 18% last month during weekends. The absence of institutional trading during these days affects liquidity.
Market Correlation:
"Makes you wonder where we are going if we are becoming so correlated with broader markets," a user remarked, highlighting concerns about Bitcoin's relationship with stock market patterns.
Liquidity Impact: Another contributor mentioned, "Low liquidity allows big players to manipulate the price," reaffirming concerns over market dynamics.
Insights from the Market
Quotes from community members shed light on the situation:
"ETFs add a bit of that tradfi rhythm, but the core market structure hasn’t changed."
"Curiously, weekend movement is pretty muted now with one exception… Sunday evening shows real activity."
This analysis points to frustrations among retail traders, who feel sidelined as institutional influences reshape Bitcoin's trading behavior.
Key Takeaways
💼 Trading volume typically reduces by 10-15% on weekends.
🧐 Institutional dominance means retail impact on price diminishes.
📉 Last month's weekend activity fell 18% compared to weekdays.
The emerging trends indicate a new chapter for Bitcoin, possibly leading to more predictable but less volatile trading days on weekends. As the market evolves, many are left questioning whether the current trajectory serves the decentralized ethos of cryptocurrency.
Anticipating the Market's Next Moves
As Bitcoin continues to adapt to the presence of institutional investment, there's a strong chance we’ll see weekends morph into predictably quiet trading periods. Experts estimate around a 30% decrease in retail trading activity on these days as institutional players maintain their grip. This trend may lead to more stable prices during weekends, but, conversely, it also raises the risk of larger price swings when institutional activity does occur. Given the current dynamics, one could argue that while weekends may lack excitement, the pressure on retail traders could grow as they find it harder to influence the market.
Echoes from the Heart of Travel
A less obvious parallel can be drawn with the early days of commercial air travel. Back then, flights were often less crowded, and airlines dominated pricing and routes, similar to how institutions wield power in the Bitcoin arena today. Just as travelers felt sidelined during those initial years, grappling with limited options and high fares, retail traders now must navigate a landscape where significant price movements are influenced by a few major players. The transformation of that travel industry showcases how markets can shift dramatically over time, often to the detriment of smaller participants, while simultaneously evolving into a more structured and sometimes predictable system.