Crypto Market Crashes on Weekends. Here’s Why
JUN 27, 2021
Crypto Market Crashes on Weekends. Here’s Why
CRYPTOCURRENCY, BITCOIN, EDUCATIONAL
Cryptocurrency market crashes mostly on weekends and here’s why.
There are several key factors that lead to market crashes on weekend :
- There is Less Volume during weekends in compared to weekdays
- With Less Volume on Weekends, Trading on Margin will greatly fluctuate the price
- Market Manipulation
If there is one thing that you realize over the past couple of weeks, is that cryptocurrency market crashes on the weekends, especially Saturday and Sunday. New investors that just enter the market barely can handle the volatility.
Price of Bitcoin fluctuates greatly and most investors most probably will be scared off. However, for experienced crypto trader, this isn’t the first time and they have been through those cycles. The weekend crashes are not the end of crypto. Most investors who couldn’t handle the stress and volatility will sell their asset at a loss.
The cryptocurrency market are trading 24/7 and it could sometimes be shocking waking up on Sunday looking at your portfolio crashes 40% overnight.
Despite all this, it takes time to learn about the crypto market and sooner investors will have a peace of mind on what is happening during weekends.
More Content About “Bitcoin Worst Case Scenario in 2021”: Plan B, Creator of S2F Model ” Click Here
Image from Gobankingrates.
Here are 3 main factors that investors should know on Why Market Crashes During Weekend:”
Less Volume on Weekends
Cryptocurrency market operates 24/7. but not all trading platforms are open during the weekends. Like Bitcoin ETFs, investors are unable to buy or sell their Bitcoin in ETFs during weekends. Bitcoin ETFs only operates during weekdays and investor’s funds will start flowing in on Monday which cause lower volume on weekends.
There are mismatch for Crypto ETFs in compared to cryptocurrency platforms that trades 24/7.
Whales that purchase massive amount of cryptocurrency (Or Selling) on weekends could possibly move market prices.
Securities Exchange Commissioner, Gary Gensler has been looking into regulating cryptocurrency to further protect new investors that are entering the market before approving a crypto ETF.
The SEC is still delaying Bitcoin ETFs at this moment due to lack of regulation needed in the crypto industry.
Trading On Margin
Price Swings can be caused by Margin Trading where investors leverage exchanges to trade on weekends. On Binance, traders can leverage up to 100x on trading futures. Absolute madness.
However, Investors are required to pay a maintenance margin to maintain their margin trade. Every 8 hours there is a fee need to be paid to exchanges. Traders are required to keep an minimum balance on their account for them to continue their trade.
So if an investors are currently trading on ETFs buying long positions in Bitcoin, if market crashes 30% to 50% on weekend.
Investors that are trading on margin are unable to sell their position in time will be liquidated during weekends. Imagine there are thousands of position getting liquidated.
Massive Market Volatility on Weekends.
This is Bitfinex Short Position Reaching All Time High
Source from Bitfinex
Massive short position in Bitfinex on Sunday, 27th June 2021.
Market Manipulation
YouTube Crypto Analyst, Uncomplication has been calling a potential crash when Bitcoin was hovering around $60,000. The trader has posted a video about the Wyckoff Distribution Method played out on the peak price of Bitcoin.
Click Here to Watch the Video.
After posting this video, the YouTube Trader got comments saying that a market crashes are unlikely and price of Bitcoin will only move upwards.
However, the Wyckoff Method did play out perfectly causing a crash from $64,000 to $38,000.
This are method that whales are manipulating the market to buy Bitcoin at a cheaper price. Imagine whales that have so much power and why would they want to buy Bitcoin at such a high price.
They can potentially dump the price of Bitcoin making it cheaper and gobble up cheaper coins bottom.
Most Retail Investors that came to the space will get scared-off by looking weekend market crashes like this.
Whales are still accumulating while weekend price decline why the inexperience investors that selling their Bitcoin to Whales.
Read More About “Here’s What Happened: Bitcoin Whale Gobble up Massive $143 Million Bitcoin” Click Here
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To summarize, if you are a new retail investor that just got into this space, dont get to intimidated by the price fluctuation during weekends. The crypto market doesn’t work the same as traditional stock markets.
The price of cryptocurrency is highly dependent on Bitcoin. As long Bitcoin declines, other crypto price will follow the price movement. (vice-versa)
Keep Hodling your Bitcoin.
Don’t sell your Bitcoin to Whales that want to shake you off the market.
Read More About “Bitcoin Buy Signal When This Indicator Flips Green: Crypto TA” Click Here
