The weekends and the crypto market

avatar of @nohibernation
2 min read

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The crypto markets is often a kind of market which is volatile and many people in the market are already aware of that , infact the market tends to often be more volatile during the weekends and crash often happens during the period and some newbies might be wondering what causes it..

Well here are some quick reasons why I think the market often get more volatile during the weekend , I might be wrong but its just my own personal opinion about the subject..

During the weekends , there are many traders who do not engage in trading simply because it is the weekend , spending weekends with loved ones is a common culture among so many people all over the world and that also makes lesser number of people to trade during the weekends , and this affects the trading volume on the market during the weekend and it often takes a dip...

Whenever there is a lower trading volume , it makes it easier for the big trades to have an outsized effects on the market at that moment and it could sometimes lead to a negative situation on the market..

Another way the weekends affect the crypto market is that alot of traders are margin traders no doubt and that means they often borrow money to take certain trades on the market, and what happens when the price drops alot?? It could lead to a margin call , and what happens when there is a margin call and the trader really needs to pay back ?? He or she needs to repay their loans by trying to move around but remember banks don't open on weekends?? That could become a difficult situation on the market and thereby making the market to dip at that moment..

The market liquidity tends to be affected during weekends because so many traders might not be able to put some desired money into their exchange account because the banks are not opened during the weekends..