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Why the price of cryptocurrencies crashes on weekends

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Lens
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 Lens
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The crypto space is filled with lots of drama, with demand-supply dynamics being the major determinant of the cryptocurrency's market value. However, it has been consistently seen that the price of cryptocurrencies crashes on weekends. These are the major reasons why the price of cryptocurrencies crashes at the weekends. 

1) Weekend transaction volume: The number of transactions on weekends is typically low because investors are unable to purchase cryptocurrency on weekends. Banks are closed during this period. 

2) Leveraged trading:
 At weekends, investors who borrowed money from the exchange will have to pay it back when it drops to a certain amount, called the "margin call." This will trigger sell-offs by the exchange to recover the funds. You and I know that sell-offs would bring the prices of cryptocurrencies down.

 

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