Most financial instruments, like the majority of we people, take the weekend off.
Even when weekend trading is offered by online brokers on key currency pairs or indices, it usually occurs with very low volume and little price movement barring any market-moving news, basically there to allow traders to adjust positions or hedge open positions heading into a new trading week.
But Bitcoin seems to be very different.
For the second weekend in a row, and without any precipitating news, Bitcoin prices have gone on a 10%+ roller coaster ride. After last weekend’s 34% Bitcoin correction from an all-time high price of $2,790 for the leading digital currency to below $2,000, Bitcoin prices seem to be marching back up.
Beginning this past beginning-of-June weekend at about $2,400, Bitcoin spent most of Saturday (GMT time) climbing up about 10% to the $2,600 range, before dropping back down to the low $2,500’s on Sunday.
As of Monday early morning, Bitcoin was changing hands at $2,575, once again approaching the $2,600 level.
So why all the weekend action?
Well, a few reasons.
First, Bitcoin volume is still mainly retail trader driven, in relatively small amounts, such that Monday-thru-Friday-only institutional traders don’t matter as much. Not nearly as much as they do in almost any other well-followed financial instrument.
Second, Bitcoin prices are still very much driven by trading volumes in the Far East – and in particular China. Unlike in many other parts of the world, Chinese workers dare not play games at work, nor use “company” time for personal endeavors such as trading. But on the weekend – it is bombs away.
Any other theories out there for the weekend-specific Bitcoin price and volume spikes? Please share your comments and ideas below.