Lens1000
VIP Contributor
Experts predicts cryptocurrency to crash weekends and if you closely follow crypto market at weekends you will surely agreed that truely cryptocurrency crashes due to the bearish behaviour of investors on weekends. Here are the reasons why crashes tend to happen
1) volume of transactions at the weekends.
Transaction volume is low at weekend because investors cannot add money to their account to trade as banks closes weekends. Also , Elon Musk's who's tweet wave a hand over the crypto space can also cause a spike on the volume of trades. However, volume rises as Asia banks open on sunday night into monday as US banks follow
2) Trading on margin
Volume drops when investors trade cryptocurrency on margin. This is when investors borrow money from exchange and must pay back when the price dips to a certain level called the margin call. This will trigger a sell-off of the digital currency by the exchanges to cover up the loan. Moreso, investors couldn't pay back borrowed funds due to bank closure at weekends
3) market manipulation: This is still attached to speculation but is believed to happen during the week. They fake sell or buy order thereby artificially influencing the price of cryptocurrency creating a false demand and supply. However the spoofing is not proven yet. It usually influences the price of cryptocurrency to rise.
Do you believe these are the major cause of the dip weekends . What's your take on this?
1) volume of transactions at the weekends.
Transaction volume is low at weekend because investors cannot add money to their account to trade as banks closes weekends. Also , Elon Musk's who's tweet wave a hand over the crypto space can also cause a spike on the volume of trades. However, volume rises as Asia banks open on sunday night into monday as US banks follow
2) Trading on margin
Volume drops when investors trade cryptocurrency on margin. This is when investors borrow money from exchange and must pay back when the price dips to a certain level called the margin call. This will trigger a sell-off of the digital currency by the exchanges to cover up the loan. Moreso, investors couldn't pay back borrowed funds due to bank closure at weekends
3) market manipulation: This is still attached to speculation but is believed to happen during the week. They fake sell or buy order thereby artificially influencing the price of cryptocurrency creating a false demand and supply. However the spoofing is not proven yet. It usually influences the price of cryptocurrency to rise.
Do you believe these are the major cause of the dip weekends . What's your take on this?