Bitcoin has long been a hallmark of cryptocurrency markets, growing thanks to its 24/7 availability. Weekend trading, once known as a hotbed of volatility, has become especially essential in the cryptocurrency landscape.

However, a recent report from Kaiko paints a not-so-rosy picture – BTC weekend trading volume decreased to historic lows, potentially marking a novel era dominated by institutional weekday warriors.

Bitcoin trading activity requires a nap

Kaiko’s Data is plain: weekend trading activity in Bitcoin has fallen dramatically, from a high of 28% in 2019 to just 16% in 2024. This dramatic decline coincides with the much-anticipated launch of cash Bitcoin ETFs in the U.S. These exchange-traded funds, which mirror the performance of stocks, can only be traded during time-honored market hours.

The influence of institutional investors who prefer regulated products is noticeable. The report highlighted the rapid growth Bitcoin trading activity in the “benchmark window” — the last hour of trading on the U.S. stock market. This suggests that institutions are forming novel trading patterns, prioritizing weekdays over once-active weekends.

Beyond weekends: multi-faceted market transformation

The decline in weekend activity is not solely due to ETFs. The closure of cryptocurrency-friendly banks like Signature and Silicon Valley Bank in March 2023 is another contributing factor. These institutions provided a 24/7 infrastructure that allowed market makers to continuously place buy and sell orders. Their absence created a weekend liquidity gap, which further dampened trading activity.

However, the changing landscape is not all doom and gloom. The report gives a ray of hope to investors looking for stability. Reduced weekend volatility could make Bitcoin a more predictable asset, potentially attracting a novel wave of institutional interest. Additionally, the historical trend suggests that July could be a positive month for Bitcoin, with price increases seen on seven of the last July 11s.

Shocks on the horizon?

While the weekend trading scene may be calming down, the coming weeks are shaping up to be a bit of a turmoil for the cryptocurrency market. Potential approval Ethereum ETFs could further enhance institutional involvement and potentially influence Bitcoin’s dominance.

The road lies ahead

Declining weekend trading activity signals a potential paradigm shift in the Bitcoin market. While once volatile weekends may become a relic of the past, the coming months are shaping up to be tumultuous.

Institutional investors are now in the spotlight, shaping novel trading patterns and potentially ushering in an era of greater stability. However, this month could still introduce significant volatility, keeping investors guessing.

Featured image is from Inc. Magazine, chart is from TradingView