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Why does the cryptocurrency market crash during weekends? Opinion

Why does the cryptocurrency market crash during weekends? Opinion

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Price volatility is a huge concern in the cryptocurrency market. There’s some degree of volatility involved with the stock market too, but the cryptocurrency market, being fairly new, comes with lesser understanding. In May this year, HSBC, Europe’s biggest investment bank, denied any interest in cryptocurrency as an investment on account of it being “too volatile”.

Out of all the understanding that experts have, a recent trend was noticed by analysts – cryptocurrency crashes usually occur on weekends. Stephen McKeon, a finance professor and partner at Collab+Currency, a crypto focused investment fund explained in an interview that liquity requires study of the supply of buyers and sellers. If there are few buyers compared to sellers or vice versa, transactions fluctuate resulting in a spike or crash.

Another reason stated by Amin Shams, professor at Ohio State University talks about the cryptocurrency market’s connection with thin trading volumes, which cause dramatic swings. Besides this, there are influential people like Elon Musk who can change the course of the cryptocurrency market with one tweet.

Understanding the market structure

The cryptocurrency market is made of several exchanges that have their own policies as there is no centralization. The cryptocurrency market is also active 24 hours. So when people trade, when people are awake, when people are observing the markets and making big moves also impact the way the market behaves and prices fluctuate.

While there are several more theories to this weekend’s market laziness, one of the explanations given by Teddy Fusaro from Bitwise Asset Management shines. He believes that traders should expect less liquidity from the market during the weekends and predicts that this trend will continue in the future as well. His theory is simple, market makers are less loaded on weekends, so it reacts by rising or crashing.

Margin trading also plays a vital role. Generally, traders borrow money from the exchanges and purchase crypto coins. When the value of the coin dips to a certain level, they must repay the debt. But when traders are unable to repay, the exchanges sell the holdings to make money. Such cases increase during the weekends as banks are closed. This triggers the price.

Remember the Reddit incident that caused a big stir in the market. Such market manipulation is often a visible reason. A 2019 research talked about a scenario where Tether, a stable coin, artificially inflated Bitcoin and altcoins during the 2017 cryptocurrency boom. While many analysts are on the fence about this theory, it cannot be fully ruled out.

Be it due to a decline in trading activities or lack of operational banks, this phenomenon of the cryptocurrency market dipping only during weekends is becoming more of a fact with conclusive proofs, week after week. What do you think? comment below.

Source credits: Analytics Insight

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Bybit Ether reserves near 50% pre-hack levels after $295M ETH buy

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Bybit has recovered 50% of its Ether reserves after a $1.4 billion hack in February, one of the largest crypto thefts in history. The exchange, which saw its ETH holdings drop from 439,000 to just 61,000 ETH, has since rebounded to over 201,600 ETH through spot buying and emergency industry support.

To aid recovery, Bybit secured $390 million in loans and transfers from firms like Binance, Bitget, and HTX Group. Additionally, the exchange purchased 106,498 ETH worth $295 million via OTC trades, helping to rebuild its reserves quickly.

Despite losing over $5.3 billion in total assets post-hack, Bybit’s reserves remain higher than its liabilities, as confirmed by an independent proof-of-reserve audit by Hacken. This has reassured users, with Bybit processing 350,000 withdrawals within 10 hours of the attack.

The attack was reportedly linked to North Korea’s Lazarus Group, which exploited Bybit’s Ethereum multisig cold wallet. Analysts suggest the breach involved a deceptive transaction that tricked signers into approving a malicious smart contract.

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Markets

Tezos launches world’s first Uranium marketplace on blockchain

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Tezos blockchain has become the foundation for the world’s first uranium trading marketplace, marking a significant milestone in the integration of blockchain technology with critical commodities. Announced on Nov. 21, the platform aims to bring transparency and efficiency to the global uranium market, which has traditionally operated with limited visibility and complex supply chains. The initiative is spearheaded by major industry players seeking to modernize uranium trading.

The blockchain-based marketplace will enable buyers and sellers to transact securely while providing an immutable ledger of all transactions. This innovation is expected to address long-standing challenges in the uranium sector, including traceability, regulatory compliance, and pricing opacity. By leveraging Tezos’ smart contract capabilities, the platform offers automated processes for contract execution and ensures a transparent record of ownership and origin.

Industry leaders have praised the project as a game-changer for the nuclear energy supply chain, which relies heavily on uranium. The marketplace is designed to support global efforts to enhance sustainability and safety, aligning with the increasing focus on responsible sourcing of critical materials. The move could also attract new participants to the market by lowering barriers to entry and fostering trust through blockchain’s verifiable data.

This development underscores the expanding role of blockchain in transforming traditional industries beyond finance. By addressing inefficiencies in one of the world’s most regulated markets, Tezos demonstrates how decentralized technologies can drive innovation and transparency. As the uranium marketplace gains traction, it could serve as a blueprint for blockchain adoption in other critical resource sectors.

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Business

LimeWire adds decentralized file sharing feature with BNB Greenfield

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LimeWire, the iconic file-sharing platform from the early 2000s, has made a comeback, reimagined for the Web3 era. Announced on Nov. 21, the platform now operates as a decentralized file-sharing network, leveraging blockchain technology to enable secure and transparent peer-to-peer sharing of digital assets. The relaunch aims to blend nostalgia with innovation, introducing LimeWire to a new generation of users while embracing the principles of decentralization.

The updated LimeWire platform integrates blockchain to provide content creators with greater control over their work, including tools for licensing and monetization. Users can share files, such as music, videos, and other media, while ensuring ownership and royalties are preserved through smart contracts. LimeWire also features its own native token to facilitate transactions within the ecosystem, including tipping creators and accessing premium content.

LimeWire’s revival reflects a broader trend of Web2 platforms transitioning into the Web3 space. The platform’s focus on decentralization aligns with the growing demand for alternatives to centralized file-sharing services, which have faced criticism over censorship and lack of user privacy. By adopting blockchain, LimeWire seeks to address these issues while empowering both creators and consumers with greater transparency and fairness.

As LimeWire re-enters the digital landscape, its success will depend on user adoption and the platform’s ability to compete with established Web3 content-sharing solutions. With its nostalgic branding and commitment to innovation, LimeWire’s evolution into a decentralized platform positions it as a potential leader in reshaping how digital content is shared and monetized in the blockchain era.

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