I think that you have some very good points here, especially with the traffic being a lot lower on the weekend because of banks being closed, however this is not true around the world and there are some places that have major transactions on weekends as people are not working and can focus on their crypto portfolio.Experts anticipate that cryptocurrency will crash on weekends, and if you constantly watch the crypto market on weekends, you will undoubtedly agree that cryptocurrency crashes as a result of investors' pessimistic behavior on weekends. Here are some of the reasons why accidents happen.
1) The number of transactions on weekends:
Weekend transaction volume is low because investors are unable to add funds to their accounts in order to trade because banks are closed on weekends. Also, Elon Musk's tweet waving a hand over the crypto sector can generate a surge in trading volume. However, as Asian banks open on Sunday night, the US banks follow on Monday, transaction volume climbs.
2) Leveraged trading
When investors trade cryptocurrency on margin, volume reduces. When an investor borrows money from an exchange, they must repay it when the price falls below a particular amount, known as the margin call. As a result, the exchanges will sell off the digital money to cover the loan. Furthermore, due to weekend bank closures, investors were unable to repay borrowed monies.
3) Market manipulation: This is still associated with speculation, but it is thought to take place during the week. They create a false demand and supply by faking sell or purchase orders, fraudulently influencing the price of cryptocurrencies. However, the spoofing has yet to be verified. The price of bitcoin frequently rises as a result of this.
Do you think these are the main reasons for the weekend dip?