Weekend Bitcoin Trading Activity on the Decline, Says Crypto Market Research Firm

Bitcoin’s Weekend Liquidity Decline

According to analysts at blockchain market data provider Kaiko, there has been a significant decline in weekend Bitcoin trading. The percentage of Bitcoin transactions executed on weekends has decreased over the years, indicating a shift in trading patterns.

Weekend Trading Statistics

• In 2024, only 13% of all Bitcoin transactions were executed on the weekend, down from 17% in the previous year and 24% in 2018.
• Weekend trading volumes on offshore exchanges fell from 27% to 15% over the period spanning from 2018 to the present day.
• For onshore markets, the trading volume on weekends declined from 21% to 11% during the same period.

Kaiko’s data suggests that historically, weekend participation in crypto trading has been higher among retail customers rather than institutions. This trend has contributed to the overall decline in weekend trading activities.

Impact on Crypto-Fiat Trading

Notably, weekend downturns have had a significant impact on crypto-fiat trading. BTC-USD weekend trading volume reached an all-time low last year, while Bitcoin-Tether (USDT) trades experienced higher volume.

Bid-Ask Spread and Bitcoin Liquidity

An analysis of the bid-ask spread of Bitcoin revealed that weekend liquidity is poorer on Coinbase compared to Binance. This difference in spread indicates variations in buy and sell prices, reflecting the level of liquidity on the respective exchanges.

Impact of Bitcoin ETFs

The recent approval of spot Bitcoin exchange-traded funds (ETFs) has brought significant changes to Bitcoin trading. With institutional money flowing into Bitcoin, the trading patterns and liquidity have adapted to accommodate the influx of traditional finance participants.

Bitcoin ETFs Pump Trading

The approval of Bitcoin ETFs in 2024 has driven a major price narrative, leading to Bitcoin trading at over $59k. This level has not been seen since November 2021, marking a significant resurgence in Bitcoin market value.

The approval of ETFs by the SEC after a period of regulatory uncertainty signifies a turning point for the industry. The influx of institutional investments and the subsequent market response have reshaped Bitcoin trading dynamics.