Bloomberg: Weekend trading is fueling Bitcoin price spikes

30 Jun, 2019
by Richard Allen
Bitcoin
Bloomberg: Weekend trading is fueling Bitcoin price spikes

Unlike traditional exchanges which are closed on the weekends, Bitcoin is tradable 24/7. As such, the asset tends to see more wild price fluctuations on Saturday and Sunday, Bloomberg reports.

Since May, weekend activity has accounted for around 40% of Bitcoin’s price gains this year, according to data compiled by Bloomberg. David Tawil, president of crypto hedge fund ProChain Capital provides a potential reason for this anomaly.

One factor is that crypto traders are looking to get a headstart. Many large corporations tend to wait until Monday before making any announcements and traders are keen to get ahead of the deluge of news by trading over the weekend. Tawil says:

“It’s a little bit of anticipatory or front-running the news cycle by trading up on the weekend. You’re somewhat flying blind in the sense that you don’t know if there will really be an announcement made on Monday morning but in a packed news cycle like crypto, where there’s developments really every day, I don’t think it’s wrong to bet that Monday morning would have a positive development.”

Bloomberg Intelligence analyst Mike McGlone states traders could be taking advantage of the trading respite typically seen on weekends to snag a quick profit.

“It is more Asia and those more sophisticated traders picking time and paths of least resistance to profit. I fully expect the leveraged money professional-types are utilizing all tools to spark moves and profit from.”

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