Bitcoin, known for its volatile nature, has seen a surprising decline in weekend trading volume, reaching an all-time low. According to a report by Kaiko research, only 16% of Bitcoin trading volume occurred on weekends in 2024, compared to 28% in 2019. This significant drop has been attributed to the launch of spot Bitcoin ETFs, which has shifted trading activity to weekdays.

The report highlights that ETF trading only occurs during stock market hours, leading to an increase in Bitcoin trading during the benchmark fixing window (3-4 pm New York time). This window has become the second most popular time for Bitcoin trading on weekdays, but the effect is not seen on weekends. As a result, weekend trading has consistently decreased since 2021, reaching its lowest historical level.

Another factor contributing to the decline is the closure of crypto-friendly banks, Signature and Silicon Valley, in March 2023. These banks operated 24/7 networks that allowed market makers to place large orders, but their closure has reduced liquidity in the market. Currently, Bitcoin's price has been stagnant, with investors awaiting a potential cut from the Federal Reserve.

The decline in weekend trading volume and volatility has significant implications for the market. With reduced liquidity and trading activity, the market may become more vulnerable to price fluctuations. However, the launch of spot Bitcoin ETFs has also brought more institutional investors into the market, potentially leading to increased stability.

In conclusion, Bitcoin's weekend trading slump is a significant development in the market. While the launch of spot Bitcoin ETFs has contributed to the decline, other factors such as the closure of crypto-friendly banks have also played a role. As the market continues to evolve, it remains to be seen whether this trend will persist and what implications it may have for the future of Bitcoin trading.