Weekends are the Wild West for Bitcoin, but nobody knows why exactly, but there are some theories.
Weekends are the Wild West for Bitcoin, but nobody knows why a Bloomberg report said.
Bitcoin, which trades all around the clock, tends to spike on weekends. In fact, surges in weekend activity since the beginning of May account for about 40 per cent of Bitcoin’s price gains this year, according to data compiled by Bloomberg.
According to data from Bitstamp, a cryptocurrency exchange, Bitcoin peaked at $19,666 on a Saturday in December 2017. So what is it about weekends that make bitcoin traders go crazy?
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Bitcoin is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
It is a peer to peer payment system also known as an innovative payment network and a new kind of money, it trades on all days of the week and all around the clock making it ideal to deal in any country or any time zone.
Since digital assets run on decentralized networks, powered by blockchain technology, that record all of the transactions crypto investors can send digital tokens anywhere any time.
Some experts feel that like other businesses Crypto news is usually big on Mondays. That means that crypto companies choose Mondays for any major announcements. So the big trading over the weekend is a pre-emptive way to get ahead of the news.
Effectively, people think that Monday could bring them some good news and hence trade before the news arrives. This doesn’t usually happen in traditional markets since they are usually shut over the weekend.
Other experts have pointed out that crypto investors may spend time with other investors or friends over the weekend and hence discuss their crypto assets. This could lead them to trade over the weekend when they have the time to spend on crypto. Since many crypto investors are people who have other jobs and work during the week, the weekend is usually the time they prefer to spend on their crypto investments.
“The market is, by and large, retail individuals and I think that weekends are a time when those people have more free time to read the week’s news, to chat with friends, to pitch friends on exciting things they heard about during the week,” Hunter Horsley, chief executive officer of Bitwise Asset Management told Bloomberg.
“It is mainly driven by opportunistic investors,” Naeem Aslam, chief market analyst at Think Markets UK in London said. Those are “people who are following the herd and have huge FOMO.”
FOMO or ‘Fear of Missing Out’ is an anxiety that an exciting or interesting event may currently be happening elsewhere.