The Risks of Trading "Bitcoin" Throughout the Day Rise When Wall Street Sleeps

SadaNews - The decline of the "Bitcoin" currency in recent months has concealed a shift in its market structure, which operates 24 hours a day; trading does not stop, but the liquidity that helps stabilize prices is increasingly concentrated during U.S. market hours.

Since the sell-off in October, the world's largest cryptocurrency has lost about 40% of its value. This drop has obscured a pattern that reveals the significant impact of Wall Street on risk pricing, as weekends have turned into hotspots for sharp volatility, often without the recovery that followed them in the past.

A Gap Between Bitcoin Trading and Wall Street Hours

This reveals a widening gap; "Bitcoin" is still traded around the clock, but this does not apply to the Wall Street system, which now contributes to the stability of the cryptocurrency through ETF flows, hedging through options contracts, and institutional liquidity.

Since the launch of spot "Bitcoin" ETFs in the United States, institutional trading has become aligned with the rhythm of traditional stock markets, meaning five trading days extending for about six and a half hours daily. Pricing mechanisms, hedging, and the use of leverage have become linked to these hours, with risk being effectively priced during U.S. market hours, when index funds and derivatives are open and liquidity is at its highest.

Weekends reveal what happens in the absence of this system.

Data from "BridgePort," a company specializing in cryptocurrency infrastructure solutions, shows that the cost of trading "Bitcoin" rises by about 11% during weekends, while the actual market depth for a $100,000 trade decreases by about 9%, and the liquidity available drops by more than 5%.

Decline in Bitcoin Trading Volume on Weekends

Price determination has become increasingly focused during the afternoon session in New York, leading to a concentration of activity within U.S. market hours.

As a result, the share of weekends from total trading volumes has declined to about 16% in 2025, compared to approximately 25% in 2018, according to data from "Kaiko."

Trading sessions in Europe and the Asia-Pacific region often show stable or negative net performance, according to "Velo.xyz," indicating an increasing concentration of price pricing during U.S. hours.

James Harris, CEO of "Tesseract" for digital asset management, said, "Liquidity during weekends and outside trading hours remains limited, and when key price levels are broken, derivative positions can turn an ordinary decline into a wave of forced deleveraging."

Absence of Fund Flows Aggravates Bitcoin Volatility

During the sell-off waves seen on weekends this year, forced liquidations stretched across platforms like "Hyperliquid," with market makers withdrawing, at a time when ETF flows, which typically provide stability during the weekdays, were absent.

James Harris stated, "ETF flows were not present to contain the decline," adding that "the continued net outflows from listed U.S. spot cryptocurrency funds are removing a natural demand." Investors have withdrawn over $7.5 billion from U.S.-listed "Bitcoin" funds since October 10.

The fragility of trading during weekends reflects a deeper shift in market structure, as options contracts linked to U.S.-listed "Bitcoin" ETFs have become the main platform for pricing volatility. Bloomberg data shows record trading levels in options linked to the "iShares Bitcoin Trust" from "BlackRock," during last week's sharp sell-off, when "Bitcoin" recorded its largest daily drop since the collapse of the "FTX" platform.

Nocturnal Trading Products Targeting Bitcoin Movements

Since the introduction of trading options linked to U.S.-listed "Bitcoin" and "Ethereum," these platforms have outperformed traditional cryptocurrency exchanges. According to data from "Amberdata," contracts linked to (IBIT) and (ETHA) now account for more than half of the total option trading volumes for both currencies.

This activity concentrates during U.S. trading hours, linking risk pricing with the rhythm of Wall Street, making positions established during weekdays more susceptible to volatility when these markets close.

Nirob Ramalingam, CEO of "BridgePort," stated, "The interaction of the traditional finance system that operates five days a week with a cryptocurrency market that operates around the clock creates a degree of fragility," noting that "the largest liquidity providers linked to balance sheets have limited presence during weekends, while liquidation dynamics continue within the cryptocurrency market."

This imbalance often produces what is known as the "Monday compensation effect"; as hedges and ETF flows return. This shift has already begun to reflect on the development of new financial products, including proposals for ETFs targeting "Bitcoin" movements during nighttime trading hours.