Bitcoin Price Spikes Fueled by Weekend Trading Surges: Report

The stock market closes on weekends, but bitcoin never closes. And that's probably why you see the industry constantly whipsawed by the price trends.

While enjoying a relaxing weekend, crypto dealers elsewhere are busy buying and selling. Since May, the flood of weekend trade has accounted for 40% of the bitcoins price gains this year, Bloomberg reported.

Best Never Rest, nor Bitcoin?

There are several reasons why this can happen. David Tawil is president of the ProChain Capital crypto hedge fund.

Tawil says one factor is that antsy crypto dealers want to get past the package by shopping for the weekend.

"It's a bit predictive or front-running news cycle by shopping at the weekend. You're a bit flying blind in the sense that you don't know if there will really be an announcement made on Monday morning. But in a packed news cycle like crypto. .. do not think it is wrong to bet that Monday morning will have a positive development. "

  bitcoin price chart

Opportunistic Traders Pounce at Weekend Lulls

Bloomberg Intelligence analyst Mike McGlone believes that savvy traders try To take advantage of hell to get a quick profit.

"There are more Asia and the more sophisticated dealers picking times and roads with least resistance to profit. I fully expect that the money supplied professional types use all tools to spark movements and profits."

Still, others believe The bitcoin price climbs on weekends because crypto investors have more time to digest all the news that unfolds during the week. They then use the data to calculate trades. Bitwise Asset Management CEO Hunter Horsley said:

"The market is mostly private individuals. I think the weekends are a time when these people have more free time to read the week's news, to talk to friends, to throw friends on exciting things They heard about the week. "

Skeptics: Bitcoin's volatility is a major disability

Then there is the possibility that bitcoin whales manipulate prices by making large volume trades on weekends to shape where they want the market on Monday.

Bitcoin's volatility is an important reason why the crypto industry has acquired excessive media attention and hype. However, it is unpredictable why skeptics condemn bitcoin and cryptocurrencies as unreliable financial assets.

The Motley Fool's Sean Williams – a vocal cryptoscope – says bitcoin will never gain mass approval because it's so volatile. And this makes it toxic to retailers.

"Bitcoin's volatility is a major reason why most retailers will not accept it. Even with blockchain-based transactions that can potentially validate and settle faster than payments on traditional banking services, the settlements can still allow wild flights in the price of bitcoin . "

Crypto Bulls: Bitcoin does not go anywhere [19659004] Crypto bulls react to naysayers by saying that bitcoin does not go anywhere, so they will get used to it.

"Bitcoin is more popular than Jesus."

Source link

Back to top button