Jan 03, · On Friday morning, Nexo co-founder Antoni Trenchev told Bloomberg’s Matt Miller why he thinks the Bitcoin price could continue to rise to the $50, mark in Dec 21, · Bitcoin markets fluctuated during the trading session on Friday in what would have been rather quiet trading. as it was a major psychological barrier to overcome. As we head into the holidays, volume will probably drop, so it makes sense that we would sell off. Bullish Breakout Continues to Advance. Jun 15, · The most recent instance when bitcoin prices tumbled to a two-month low of $6, during the weekend of June 9 was attributed to the news .
Bitcoin drop continues during holiday tradingBTC/USD Forecast: Bitcoin Acknowledging Gravity Again
In addition to the activities of these large volume participants, there are other systematic factors at play. A primary reason for the observed trends is attributed to the mismatch in the standard operating hours of banks and the cryptocurrency markets.
Many exchanges and brokers charge a hefty fee for buying virtual currency tokens through credit cards, and therefore individuals and firms prefer bank transfer ACH deposits or wire transfers to save on card charges. As many active market participants and firms wish to purchase or offload bitcoins over the weekend, they transfer the cash from their linked bank accounts to crypto trading accounts on a Friday.
With cash lying in the trading accounts and limited market liquidity , these participants attempt to place trades at extreme prices, which also contributes to big price moves.
Low liquidity at any given point in any trading instrument often leads to wide spreads in the trading prices. It's a relatively thin market and news is exacerbated over the weekend when it's even thinner. Along with the known issues of unregulated trading with no upper or lower circuit breakers on price levels and no fundamental mechanism for cryptocurrency valuations, the traders now have another factor to be wary of: the weekend effect. Your Money. Personal Finance. Christopher Lewis has been trading Forex for several years.
He writes about Forex for many online publications, including his own site, aptly named The Trader Guy. Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted.
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