Bitcoin’s price fell slightly during the weekend from $9,200 to a brief $8,800. Now, it is back to $9,200.
This is becoming a common occurrence and one good guess would be it’s because traditional finance does not work during weekends.
Stock exchanges, foreign currency exchanges, commodities trading, everything closes on Saturday and Sunday.
Bitcoin is traded globally in thousands of exchanges, so it has no weekend, and therefore the weekend shouldn’t make a difference.
That was usually the case, but nowadays more and more volumes tend to fall and it tends to be a lot quieter during weekends.
So suggesting bitcoin is being used as a hedge of sorts in traditional financial systems and is more and more being traded on Wall Street and likewise places.
In Europe there are now a number of ETPs as well, and Canada even has just recently launched a proper Bitcoin ETF on their Toronto Stock Exchange.
In addition Germany’s biggest stock exchange, Deutsche Börse, is adding another bitcoin ETP. So starting to make that space a bit competitive in Europe.
As people can not buy or sell theses ETPs or ETFs during the weekend, that could have an effect on bitcoin’s price or volume levels and that effect might only increase as more such products come onto market.
In contrast, the biggest producer of bitcoin and eth, China, has taken significant measures not only to keep cryptos away from the traditional financial system, but also to ban completely crypto related bank transactions.
In the west however regulators generally have not intervened and in Europe the crypto blockchain space is even being encouraged.
Hence its integration with the current financial system is likely to continue to the point where someday maybe bitcoin too effectively gets a weekend.