There are several reasons why cryptocurrency prices, including coins, tend to decline or remain low during Fridays, Saturdays, and Sundays:
*Weekend Effect:*
1. Reduced trading volume: Many institutional investors and traders take breaks on weekends, leading to decreased liquidity.
2. Lower market participation: Fewer market participants means less buying and selling activity.
3. Increased volatility: Reduced liquidity can lead to price swings.
*Reasons for Low Progress:*
1. Market sentiment: Investors may be cautious or bearish on weekends due to lack of market news and updates.
2. Lack of fundamental drivers: No major economic or financial events occur on weekends to drive price movements.
3. Technical trading: Algorithms and bots may exploit low liquidity, contributing to price declines.
*Additional Factors:*
1. Weekday profit-taking: Traders may sell positions on Fridays to realize profits, causing prices to drop.
2. Weekend event risk: Geopolitical events or regulatory changes can occur on weekends, impacting prices.
3. Market psychology: Investors may be hesitant to buy or sell on weekends due to uncertainty.
*Cryptocurrency-Specific Factors:*
1. Limited exchange hours: Some exchanges have limited hours or reduced staff on weekends.
2. Lower network activity: Blockchain networks may experience reduced transaction volumes.
3. Whale manipulation: Large holders may manipulate prices during low-liquidity periods.
*Statistics:*
Historical data from various sources suggests:
- Bitcoin's average weekend price drop: 2-5%
- Ethereum's average weekend price drop: 3-6%
- Other coins' average weekend price drop: 4-8%
Keep in mind that these are general trends and not absolute rules.
*Strategies:*
1. Avoid trading on weekends if possible.
2. Set stop-losses or limit orders.
3. Monitor market news and updates.
4. Consider dollar-cost averaging.
5. Stay informed about market sentiments