Bitcoin’s Weekend Curse: Will It Finally Break the Streak
Bitcoin Looks to Break Long Streak of Weekend Losses
Bitcoin’s Weekend Woes: What’s Going On?
Bitcoin (BTC) saw a short-lived rally early Friday in the U.S. trading session, only to be quickly reversed. With a history of weekend losses over the past five weeks, investors are questioning whether another dip is on the horizon.
Geoff Kendrick, an analyst at Standard Chartered, noted in his Friday report that Bitcoin has been consistently declining over the weekends (measured from 5 PM ET Friday to 5 PM ET Sunday). This trend has been fueled by various market fears, including DeepSeek AI concerns and political uncertainty surrounding Trump’s tariff threats.
Bitcoin’s Friday Rally Falls Flat
Despite the recent downtrend, Bitcoin briefly gained 1.5% on Friday, reaching $97,600 after the release of weaker-than-expected U.S. retail sales data for January. The disappointing figures raised hopes that the Federal Reserve might consider rate cuts sooner than expected, temporarily boosting investor sentiment.
However, the rally was short-lived, with Bitcoin slipping back to pre-release levels around $96,400 shortly after.
Why Does Bitcoin Keep Dropping on Weekends?
Historically, Bitcoin’s price action during weekends has been relatively stable. However, in 2024, Fridays and Mondays have become the focal points for significant price movements. Kendrick emphasized that the current streak of consecutive weekend losses is “not normal.”
Possible Reasons for Bitcoin’s Weekend Slumps:
- Lower Liquidity: With fewer active traders on weekends, price swings can become more exaggerated.
- Profit-Taking by Bulls: Traders who accumulate Bitcoin during the week may be cashing out ahead of potential weekend volatility.
- Macroeconomic Fears: Concerns over global economic conditions and political instability may be leading to risk-off sentiment before weekends.
- Institutional Influence: Many large institutions avoid trading on weekends, leaving the market more vulnerable to retail-driven fluctuations.
A Long Weekend Adds More Uncertainty
Adding to concerns, this weekend marks a three-day break in the U.S. due to Presidents’ Day on Monday. With lower trading volume expected, Bitcoin could see increased volatility—either exacerbating its losing streak or providing an opportunity for a surprise rebound.
Will Bitcoin Finally Break the Trend?
While five consecutive weekends of losses have shaken investor confidence, a reversal could be on the horizon if:
- Macroeconomic data continues to support potential Fed rate cuts.
- Institutional buyers step in to provide support.
- Market sentiment improves, leading to stronger weekend trading activity.
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