Has Bitcoin trading volume decreased Weekend trading reaches alltime low
Bitcoin’s weekend trading volume has hit a record low in 2024, marking a significant shift in the cryptocurrency’s trading behavior. The dominance of weekdays in trading points to a trend that mirrors the traditional finance market, signaling a transition driven by institutional involvement.
The data was recently presented in a report by Kaiko, which compared the trading volume on weekends to weekdays. Notably, Bitcoin accounted for only 16% of the trading volume during the weekends from January to June, marking the lowest percentage for this period since 2012. Previous years had seen higher percentages, with 19% in 2022 and 2013, and a peak of 28% in 2019. The downward trend in weekend trading volume has been consistent, showing lower highs every two years.
The report suggests that the rise of Bitcoin spot ETFs is partially responsible for the decline in weekend trading volume, as these financial products operate under traditional finance rules and are restricted to Wall Street’s weekday operations, similar to stocks and other exchange-traded funds.
This shift in trading behavior is just one aspect of the changing landscape of Bitcoin. The cryptocurrency, which originally emerged as a decentralized peer-to-peer cash system, has seen a decrease in on-chain and spot trading volumes, while derivatives and ETF volumes have been on the rise, challenging its original vision.
According to data from Santiment’s SanBase Pro, Bitcoin’s trading and transaction volumes remain in a downward trend, despite the cryptocurrency trading at a price range of $61,400. Additionally, a significant portion of the trading volume occurs within centralized databases of crypto exchanges, bypassing the blockchain. This has raised concerns about the use of “paper bitcoin” and unbacked short-selling by institutional investors, such as BlackRock.
It remains to be seen whether these changes will have a positive or negative impact on the price of Bitcoin in the long run. However, it is evident that Bitcoin is undergoing a significant shift in behavior, and investors will need to carefully consider these changes when making investment decisions.