According to a cryptocurrency research firm, Bitcoin’s weekend trading plummeted to a record low of 16% this year, primarily due to the introduction of spot Bitcoin ETFs aligning with traditional equity exchange schedules. Kaiko, the firm responsible for this analysis, attributes the decline in Bitcoin’s weekend trading volume and volatility to the presence of spot Bitcoin ETFs and their adherence to standard trading hours. The decrease in weekend trade was notably observed in March 2023 following the failure of several major banks.

In recent developments, the emergence of spot Bitcoin ETFs has significantly impacted Bitcoin’s weekend trading patterns. These ETFs have played a pivotal role in reshaping trading behaviors, drawing traders back to traditional equity market hours. The introduction of spot Bitcoin ETFs in early January triggered a surge in Bitcoin prices to reach new all-time highs, marking a shift in trading dynamics. Despite a subsequent pullback, Bitcoin’s value remains up by approximately 45% this year. Unlike other cryptocurrencies that operate round-the-clock, Bitcoin ETFs conform to conventional stock market operating hours, resulting in a cessation of weekend trading activities. This paradigm shift has led to heightened trading volumes on weekdays, notably during specific hours of the trading day.

Kaiko’s observations indicate a notable increase in Bitcoin trading during benchmark fixing windows, marking a transition from weekend to weekday trading patterns. The influence of ETF owners in determining Bitcoin’s price during these crucial periods further underscores the impact of spot Bitcoin ETFs on reshaping trading trends.

External factors have also impacted Bitcoin’s weekend trading volume, with notable effects stemming from the collapse of financial institutions like Silicon Valley Bank and Signature Bank in March 2023. These collapses disrupted the real-time crypto trading ecosystem supported by these banks, affecting market makers’ ability to conduct weekend Bitcoin transactions seamlessly.

Furthermore, the market’s focus has shifted towards structured trading schedules, steering away from the typically volatile weekend trading environment prevalent in the past. The declining weekend trading activity in Bitcoin markets can be attributed to the combined influence of spot Bitcoin ETFs and external market dynamics, ultimately aligning trading patterns with traditional equity market schedules. Despite these shifts, Bitcoin has demonstrated resilience by maintaining a notable 45% increase in value throughout the year.