Why Do Crypto Prices Fall on the Weekend?

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Why Do Crypto Prices Fall on the Weekend?
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- 2021 has consistently seen cryptocurrency prices fall over the weekend, especially Saturday evenings and the first half of Sunday. Crypto experts have said that this is not just a 2021 phenomenon but that this has been happening for several years.

However, this is important now as regulators across the world are taking a closer look at cryptocurrency trading, and this will have a big impact on new rules and regulations that come out as crypto goes mainstream.

Amin Shams, assistant professor of finance at Ohio State University said that fewer trades on the weekend cause more volatility. In an interview with CNBC, he said, “When the volume is low, the same trade size can move prices a lot more.”

Banks are closed over the weekend and so investors are unable to add more money into their accounts. This is a problem for investors who trade in cryptocurrency ETFs (exchange-traded funds). They are trapped if the price falls over the weekend and they are unable to make a profit if prices surge over the weekend.

The second half of Sunday sees Asian markets open and crypto trade resumes. On Saturday, Bitcoin prices fell to just over 4% at $35,200 while Ethereum fell 6.56% to $2,291. It later climbed to over $39,000 on Sunday night.

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  • Royston Dsouza @Royston Dsouza
    What rubbish hahha? People add money though digital modes. They dont write slips and wait in ques anymore to deposit or withdraw money
    Like 4
    • Tom Singh @Tom Singh
      lol anything they write.
      Like 0
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  • Nikhil Katke @Nikhil Katke
    Bullshit! The chinese mines are closed. Reality.
    Like 2

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