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Bitcoin

Why Bitcoin is volatile at the weekends?

Bitcoin is always in news for its volatility and here we discuss its weird relationship with weekends.

Bitcoin is in news over the past few weeks due to major breakdown in crypto prices.  On Saturday and Sunday when most of the markets are closed, crypto market is hot-blooded. This phenomenon has been observed over the past few years. It is difficult to pinpoint a single factor but a few are given below:

One of the main reasons is less trading; fewer traders tend to make trades.  When Bitcoin is traded in less volume, it is easy for whales to manipulate and the prices become volatile.  Another reason is when traders borrow money from exchanges and when the price dips, they are unable to pay the debt back, triggering immediate sell-off that consequently drops the price further.

People who take crypto currency as a day job and cash out earnings at the weekend also participate in the cause.

Market manipulation is another factor that affects market prices. For example, a tweet of few characters from Elon Musk changes the whole crypto market.

A few weeks back Covid 19 new variant, Omicron was also cause of major crypto liquidating about $2.5 billion dollars leaving traders in tatters. Similarly, anything that happens unexpectedly also turns the market upside down.

So if you want to invest in Bitcoin, make sure you hold it for a long time and not want to sell it at the weekends when it is volatile.

About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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