U Today: Friday Is the Worst Day for Bitcoin
Analysis of recent weeks shows Bitcoin most frequently declines on Fridays, with an average two-week return drop exceeding 1%. Negative trends are also seen on Mondays and Wednesdays, though losses are usually moderate. Tuesdays see the most consistent BTC growth, while weekend trading often ends positively. However, past performance does not guarantee future results.
Friday's weakness is partly explained by differences between crypto and traditional market schedules. Cryptocurrency trading is 24/7, while stock exchanges and banks close for weekends. Institutional investors, funds, and market makers often de-risk before weekends by taking profits, reducing leverage, and closing positions, especially after a volatile week.
The derivatives market adds pressure, with weekly futures and options often expiring on Fridays. Expiry volumes increase at month or quarter-end as traders close, roll over, or adjust hedging strategies, creating order flow that boosts volatility.
Liquidity also decreases towards the week's end. With fewer large orders on exchange order books, even moderate selling has a greater price impact. If prices hit critical levels, exchanges begin liquidating leveraged positions, potentially triggering cascading automatic sell-offs.
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