Why is Cryptocurrency Market so volatile on weekends?




It has been known that the crypto course tends to be more volatile over the weekend, but analysts are confused as to why.

The market for crypto competition is unique because it is on 24/7. Unlike traditional markets such as stocks, cryptocurrency trading never sleeps. If you have been around since 2017, you may have also noticed that it is on weekends that volatility tends to be more pronounced. In fact, it was commonly called the "inevitable" weekend.

However, the truth is that this assumption is not actually based on reality. The only consistency has been that weekends are usually a time of great volatility – without predicting it. For example, just take the last few months: 40 percent of Bitcoin's prizes have been on weekends since May. In 201[ads1]7, Bitcoin reached its all-time high on a Saturday in December 2017. Both of these examples point to more than random coincidence.

 bitcoin financial crisis

Possible reasons

What can be the reasons for increased volatility on weekends? For most cryptocurrency projects, news is released on Monday, as Bloomberg writes. Therefore, many retailers buy weekends in anticipation of a price tag during everyday life.

Second, weekends are a time for crypto course dealers to regroup. Investors can use this time to discuss with friends or colleagues the latest trends and the most exciting prospects.

Third, it is generally a noticeable trading volume type on weekends. This means that price movements are much more noticeable. According to Bloomberg Intelligence analyst Mike McGlone, much of the volume on weekends also tends to come from Asia. "It's more Asia and the more sophisticated traders who pick time and roads with least resistance to profit," he says. It is during these "quieter" trading days on Saturday and Sunday that large price movements tend to occur.

Finally, sometimes the weekend creates FOMO. After all, an anxious trader who sees a steady rise in prices throughout the week can buy impulsively this weekend.

 bitcoin

A 24/7 market

The reason why analysts have been amazed at the market's volatility of crypto curves this weekend is the honest one, we have never had such a market before. The cryptocurrency market never turns off; Always trade, it is prone to volatility when we least expect it. This means we cannot rely on old calculations of traditional markets to predict encryption price changes.

Do you agree that weekends tend to be particularly volatile for the crypto competition market? Please let us know your thoughts below.


Pictures of Shutterstock.

As a reliable news exit in the blockchain and cryptocurrency industry, BeInCrypto
always works for the highest journalistic standards and adheres to a strict set of standards
of editorial guidelines. BeInCrypto is an independent website with authors and management
who may personally invest in cryptographic or block chain launches.



Source link