There are important developments in the Bitcoin market. Data from cryptocurrency research firm Kaiko reveals that this year, the portion of Bitcoin trading that took place on weekends fell to an all-time low of 16%. This decline began with the entry of spot Bitcoin ETFs into the market. Here are the details…
ETF setting for Bitcoin transactions
The approval of spot ETFs appears to have reduced BTC price volatility by bringing Bitcoin trading hours more in line with traditional exchange trading platforms. Dessislava Aubert, senior analyst at Kaiko, says the decline in weekend trading volume “is a trend that has been around for years, but ETFs are accelerating this trend.” Weekend transaction volume, which reached 28% in 2019, has been in continuous decline since then. The entry of ETFs into the market accelerated this decline, causing it to fall to an all-time low. This may be due to traditional investors preferring to be active on weekdays.
Because spot ETFs provide ease of access to Bitcoin through traditional financial markets, they reduce the need for investors to follow the market on the weekend. Another important development is the decrease in the income of Bitcoin miners. Bitcoin miners have earned less than 2 Bitcoins in total from Runes transactions over the last six days. This figure is well below the record high of 884 Bitcoins on April 24. At the same time, the average number of daily Runes transactions between June 22-28 dropped by nearly 90% to 37,820. This figure represents a significant decrease compared to the daily average of 331,040 from June 9-15.
Average network fee drops on Ethereum
Finally, there is also an important development on the Ethereum side. According to data shared by Coinbase Director Conor, the Ethereum network is currently experiencing its lowest average network fee since 2016. 9 of the 10 periods with the lowest average hourly wage were recorded this week, and all were below 3.3 gwei. As of the morning hours of June 30, the average hourly wage on the Ethereum network was only 2.94 gwei, the second lowest in history.
These developments show that the winds of change are blowing in the Bitcoin and Ethereum markets. The fact that Bitcoin trading has become predominant on weekdays due to the influence of spot ETFs and that Ethereum network fees have decreased may indicate that the cryptocurrency market is on the path to maturity. However, time will tell what the long-term effects of these developments will be.
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