bitcoin price: Bitcoin resurgence brings back old phenomenon of wild weekends
Take last Sunday, when it gained 3.4%, a similar amount to what it notched the Saturday on the weekend prior. And the Saturday before that, the coin advanced 5.5%.
That Bitcoin posts large moves is nothing new. But the token, like all other cryptocurrencies, trades around the clock, every day of the week, counter to most other assets, which tend to trade Monday through Friday on regulated exchanges. And it’s been seen in crypto markets in the past, with Bitcoin shooting higher — or posting big down days — while other assets are taking a rest from work.
The most compelling theory on the strong weekend moves might be that liquidity is thinner, meaning that price swings on large orders can be more pronounced, says Noelle Acheson, author of the “Crypto Is Macro Now” newsletter. Liquidity has been thinner for Bitcoin recently, with traders and investors staying on the sidelines and hodlers hodling, she says.
“Since the beginning of the year, volatility has picked up — still not at ‘normal’ levels, but getting there,” Acheson said. “This should herald the return of the weekend phenomenon, with lower weekend liquidity leading to stronger moves as traders and investors tentatively come back into the market.”