• Kaico reported that BTC buying and selling quantity fell 16% over the weekend, hitting an all-time low.
• The decline in buying and selling quantity coincides with the schedule of ETF issuers.
• Bitcoin's declining volatility coincides with the collapse of crypto-friendly banks in 2023.

The share of Bitcoin traded on weekends has fallen to a document low of 16% this yr, in line with a report from cryptocurrency analysis agency Kaiko. Kaiko's report linked the decline to the approval of spot Bitcoin ETFs, which skew investor buying and selling habits to match the schedules of ETF issuers, primarily conventional inventory exchanges.

Kaiko additionally famous Bitcoin's declining volatility, which is likely one of the main cryptocurrency's inherent traits: Bitcoin buying and selling continues by way of the weekend, together with Saturday and Sunday, and the digital asset has been infamous for wild fluctuations throughout such durations previously.

Based on Kaiko, Bitcoin's weekend buying and selling quantity has been declining, falling from a excessive of 28% since 2019. After a gradual decline through the years, Bitcoin's weekend buying and selling quantity has fallen sharply this yr, and Kaiko senior analyst Desislava Obert attributes the decline to ETFs.

It’s price noting that the Spot Bitcoin ETF, launched in January this yr, had a serious impression on Bitcoin. After the ETF's launch, BTC skyrocketed, sending the flagship cryptocurrency's worth to a brand new all-time excessive. Regardless of a notable retracement, the pioneering cryptocurrency remains to be up about 45% this yr.

Nonetheless, in contrast to different cryptocurrencies that commerce nonstop, together with on weekends, the Spot Bitcoin ETF follows a standard inventory buying and selling schedule, that means there isn’t any buying and selling on weekends. After the schedule was carried out, Kaiko noticed the proportion of Bitcoin traded between 3:00 pm and 4:00 pm on weekdays improve from 4.5% to six.7% within the fourth quarter of 2023.

The analysis agency famous that the highlighted time-frame is what is named the benchmark mounted interval, throughout which ETF holders decide the worth of Bitcoin and use it to calculate the ETF's web asset worth. Kaiko additionally noticed a connection between the collapse of Silicon Valley Financial institution and Signature Financial institution in March 2023 and BTC's weekend buying and selling quantity declines, noting that market makers had been now not in a position to purchase and promote the cryptocurrency in actual time utilizing the banks' uninterrupted fee networks.