June 15, 2021

Here’s Why Cryptocurrency Crashes on Weekends – NBC 5 Dallas-Fort Worth

  • Investors may trade cryptocurrency outside of the work week, allowing for after-hours price swings.
  • Fluctuations happen on weekends due to less volume, margin trading and other factors, experts say. 
  • Weekend drops may have significant effects as regulators weigh long-term plans for digital currency.

Cryptocurrency is known for volatility and some experts say crashes tend to happen on weekends.

“This has been a phenomenon in crypto for several years,” said Stephen McKeon, associate professor of finance at the University of Oregon in Eugene, and partner at Collab+Currency, a cryptocurrency-focused investment fund. 

These weekend dips may have significant effects as regulators weigh the future of digital currency, experts say. Here’s why these crashes may be happening.

Less trading on weekends

One of the reasons for weekend cryptocurrency volatility is there are fewer trades, said Amin Shams, assistant professor of finance at Ohio State University in Columbus,…

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