Bitcoin (BTC) trading volume on weekends has experienced a notable decline this year, attributed to increased institutional participation in Bitcoin trading, according to crypto research firm Kaiko.
Between 2018 and 2021, approximately a quarter of Bitcoin trading volume occurred on weekends. However, this trend has steadily decreased, with weekend trading volume falling to 13% in 2024, as noted by Kaiko on Feb. 26.
Kaiko attributes the decline in weekend trading volume to a combination of increased institutional involvement in the market and challenges in market infrastructure, leading to poor liquidity conditions during weekends.
Managing liquidity during weekends has been a persistent challenge for exchanges due to the 24/7 nature of crypto trading, creating a mismatch between traditional financial institutions’ operating hours and the needs of crypto traders and market makers.
The decline in weekend trading volume was observed across both U.S.-based and offshore exchanges. Offshore exchanges, such as Binance, HTX, OKX, Bybit, and Upbit, maintained slightly higher weekend trading volumes compared to U.S. exchanges like Coinbase, Kraken, and Bitstamp.
Kaiko highlighted poorer liquidity conditions on U.S.-based Coinbase over weekends compared to Binance, with trading costs increasing on Coinbase since the second quarter of the previous year while decreasing on Binance during the same period.
The launch of spot Bitcoin exchange-traded funds (ETFs) in the United States has contributed to a strong rebound in Bitcoin liquidity. However, Kaiko noted that there have been few transfers between spot Bitcoin ETF issuers and exchanges over weekends.
Kaiko suggests that the gap between ETF issuers and exchanges may widen as ETF issuers continue to increase their Bitcoin holdings, potentially impacting liquidity conditions over weekends.
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