Has Bitcoin trading volume diminished Weekend trading reaches record low
Bitcoin’s trading volume on weekends has hit an unprecedented low in 2024, as weekdays now dominate the market. This shift signifies a significant change for the leading cryptocurrency, resembling the behavior of traditional finance markets as institutions take the reins.
The data, recently highlighted in a report by Kaiko comparing weekend and weekday trading volume, reveals that Bitcoin accounted for only 16% of the total trading volume on weekends from January to June. This marks an all-time low for this period, with Kaiko analyzing data from seven BTC pairs dating back to 2012.
In previous years, higher percentages were recorded in 2022 and 2013, both at 19% of the overall trading volume occurring on weekends. Since the peak of 28% in 2019, there has been a clear downward trend, with weekend volume making lower highs every two years.
The report suggests that Bitcoin spot ETFs could be partially responsible for the record lows, as these financial products adhere to traditional finance rules and operate exclusively on weekdays, similar to stocks and other exchange-traded funds.
The decline in weekend trading volume is just one piece of the puzzle showing Bitcoin’s changing behavior. The cryptocurrency, which initially started as a vision of being an electronic peer-to-peer cash system free from intermediaries, has seen diminishing on-chain and spot trading volumes. Conversely, derivatives and ETF volumes have been increasing, challenging its original vision.
According to data from Santiment’s SanBase Pro, BTC trades in a price range of $61,400, while both trading and transaction volumes decrease.
A significant portion of this volume is conducted within centralized databases from crypto exchanges, bypassing the blockchain. For example, a report from Altcoinbuzz revealed that BlackRock may have borrowed Bitcoin from Coinbase without a 1:1 holding ratio, potentially allowing unbacked short-selling.
It remains to be seen whether these changes will have a positive or negative impact on the price of Bitcoin in the long run. Currently, it is evident that BTC is undergoing a behavioral change, and investors should carefully evaluate these changes to make informed decisions.