crypto liquidity fragmentation
While this trend has been ongoing for years, it has intensified with the launch of spot ETFs in the US. Unlike traditional markets that close on weekends, crypto markets operate 24/7. This causes sell-offs that start on a Friday to worsen weekend uncertainty, amplifying price impacts.

Although weekend volatility has generally declined since 2021, increased weekday trading concentration heightens the risk of sharp weekend price swings during market stress. For instance, Bitcoin moved 14% between Monday’s US open (14:00 UTC) and Friday’s close (20:00 UTC) during the recent sell-off, similar to major sell-offs since 2020.

crypto liquidity fragmentation
While this trend has been ongoing for years, it has intensified with the launch of spot ETFs in the US. Unlike traditional markets that close on weekends, crypto markets operate 24/7. This causes sell-offs that start on a Friday to worsen weekend uncertainty, amplifying price impacts.

Although weekend volatility has generally declined since 2021, increased weekday trading concentration heightens the risk of sharp weekend price swings during market stress. For instance, Bitcoin moved 14% between Monday’s US open (14:00 UTC) and Friday’s close (20:00 UTC) during the recent sell-off, similar to major sell-offs since 2020.

https://research.kaiko.com/insights/how-is-crypto-liquidity-fragmentation-impacting-markets