Bitcoin sees all-time-low weekend trading levels following ETF approvals: Kaiko

Bitcoin BTC +1.27% 's reputation, at least in the mainstream, is nearly synonymous with volatility. However, the cryptocurrency's once-wild weekends may be a thing of the past, as in 2024, trading volume on weekends has sunk to its lowest level in bitcoin's history.

While in 2019 up to 28% of bitcoin trading volume took place on the weekends, this past year that number has been only 16%, according to a new report from cryptocurrency research firm Kaiko. 

The report identifies several factors contributing to the decline, including the launch of spot Bitcoin ETFs. While crypto markets are available around the world at any time, ETF trading only happens while the stock market is open during the week. In the fourth quarter of 2023, when these products launched, Kaiko researchers observed that the proportion of bitcoin being traded during the last hour of market trading, known as the benchmark fixing window, increased.

"To reflect the benchmark price as closely as possible, the buying and selling of Bitcoin for creations and redemptions must occur during the fixing window [between 3 and 4 pm New York time]," the report reads. Since the launch of spot Bitcoin ETFs, that window has become the second most popular time for bitcoin trading, though the effect is only observed on the weekdays. 

However, weekend trading has been falling consistently since 2021 and that metric is currently at its lowest historical level. While 6.6% of trading happens during the benchmark window on the weekdays, that share falls to just over 4% during the weekends. 

Another factor for the lower volatility may be the closure of crypto-friendly Signature and Silicon Valley banks in March 2023, according to a Bloomberg report . Both banks operated 24/7 networks that allowed market makers to place large buy and sell orders for crypto, but since those networks' closures, market makers have been less inclined to provide liquidity in a low-volume environment. 

In the shorter term, Bitcoin's price has been stagnant recently as investors keep a close eye on inflation metrics, anticipating an eventual cut from the Federal Reserve, The Block previously reported .