Bloomberg notes that 40% of the increase in the price of Bitcoin in May was at the weekend, suggesting a certain trend. As an additional confirmation of his theory, the author draws attention to the fact that the price peak at $19,666 in December 2017 was reached on Saturday.
Bitcoin, unlike stocks in most global markets, is traded around the clock. "This is a unique situation," says David Tavill, president of ProChain Capital's hedge fund.
Below are a few theories that can shed light on the question: Why are the rates of cryptocurrency assets tending to rise over the weekend?
Before the events...
News streams, as well as cryptocurrency trading, never stop. At the same time, large corporations may want to wait until Monday morning to make some important announcement. "Merger Monday, for example, is a well-documented phenomenon when companies report important acquisitions on the first day of the week.
Similarly, cryptocurrency companies choose Monday for important announcements, and many traders may try to get ahead of the news at the weekend, Tavil said.
"Trade on weekends is waiting for the news," he said. - You have to touch it because you don't know if there will really be an important announcement on Monday morning. I don't think it's a mistake in the world of crypto-cryptology, where events unfold every day, to put positive news on Monday.
Group thinking
Cryptocurrency investors can discuss various news items with friends and colleagues over the weekend, thus pushing them to buy a certain token.
"This market is predominantly made up of individual investors. I think they have more time over the weekend to study the week's news, talk to friends and promote some of the great events they've heard about during the week," said Bitwise Asset Management CEO Hunter Horsley.
In 2017, the growth of the Bitcoin exchange rate was also associated with Thanksgiving, when investors who had already joined the crypto-river fever could tell their relatives how to buy Bitcoin.
Blockchain conferences have a similar effect, Horsley says. Bitcoin grew up during New York City's blockchain week in May, where thousands of people gathered to share information about the latest developments.
Volume reduction
Although prices are rising at the weekend, fewer traders may take part in trading, says Jonathan Zeppettini, the head of international activities of the Decred cryptographic project.
The fact is that these markets work on weekends when banks are closed, which leads to more pronounced price movements," he wrote. - It also takes less effort when everyone is asleep or at the weekend.
Bloomberg Intelligence analyst Mike McGlown shares this view: "Asian and more advanced traders take advantage of the moment to earn with the least resistance. I do not doubt for a second that professionals with marginal positions use all the methods available to them to cause movements and earn money from them.
FOMO
Probably there are those who observe the growth opportunities of Bitcoin during the working week, and then join in the weekend amid growing fears of missing out on possible benefits (FOMO). Thus, last Saturday Bitcoin grew by 22% during the previous five days, after which it added another 10% over the weekend.
"Such growth is caused by adventurous investors - people who follow the crowd and are guided by FOMO," added Naim Aslam, a leading analyst at Think Markets UK.