Bitcoin risks ‘sharp weekend price swings’ as ETFs suck up liquidity
Bitcoin trading volume and liquidity are concentrated on weekdays due in part to ETFs and could cause more wild price swings on the weekend.
Bitcoin has become more susceptible to wild weekend volatility since the launch of spot Bitcoin exchange-traded funds (ETF) in the United States, according to Kaiko Research.
In an Aug. 12 report, Kaiko’s crypto analysts noted Bitcoin’s liquidity has become more concentrated on weekdays, particularly in BTC/US dollar markets.
It noted that weekend trading volatility has generally declined since 2021 and has previously reported that Bitcoin’s weekend trading volumes have dropped as institutional and ETF activity has grown.
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Author: Jesse Coghlan
