One of the reasons for weekend cryptocurrency volatility is there are fewer trades.
When the volume is low, the same trade size can move prices a lot more.
With banks closed over the weekend, there is less trading because investors may not be able to add money to their accounts.
You get moments of market panic where there’s a lot of selling pressure.
Typically, there’s a rebound on Sunday night as Asian banks open and into Monday
Another reason for weekend price swings may be investors trading cryptocurrency on margin, which is borrowing money from the exchanges to buy more assets.
When the volume is low, the same trade size can move prices a lot more.
With banks closed over the weekend, there is less trading because investors may not be able to add money to their accounts.
You get moments of market panic where there’s a lot of selling pressure.
Typically, there’s a rebound on Sunday night as Asian banks open and into Monday
Another reason for weekend price swings may be investors trading cryptocurrency on margin, which is borrowing money from the exchanges to buy more assets.
Trade closed: target reached