While there exist very huge similarities between the operations of the global stock markets and the cryptocurrency markets. However, a major difference gives the investors of the latter huge flexibility in trading. While the number of cryptocurrency market investors or traders may pale in comparison to that of the stock market, the fact that crypto investors can buy and sell at any time of the week creates a more busy buzz around the global cryptocurrency markets.
The major bourses around the world are known to operate just from Mondays to Fridays every week, thus leaving a short temporary time frame when investors cannot go all out to trade the markets. While this limited operational time frame complies with regulations, the cryptocurrency exchanges through which Bitcoin (BTC) and the thousands of cryptocurrencies are traded operates round the clock under no set restrictions.
Implications of the No-Time Pause in Exchange Activities
The no-time pause of the cryptocurrency exchanges helps fuel the remarkable activity behind the crypto markets and by extension the well-acclaimed volatility o the emerging asset class. Bitcoin investors need not wait to conduct any trading activity as the platforms to buy and sell are always available, save for system upgrade sessions and other general timelines.
The availability of these numerous centralized and decentralized exchanges stirred Bitcoin Bull Mike Novogratz to share a tweet saying that “Bitcoin never sleeps.” Now, retail investors can make independent market decisions and by extension stir, massive market moves at a time when the cash-rich institutional firms are likely inactive over the weekends.
This was seen over the past weekend as the market experienced extreme volatility that drove BTC’s price down on its way to soar past the earlier $34,000 all-time high (ATH) price it recorded days ago. Mike Novogratz said in an interview with CNBC that though institutional investors are making a massive entry with new Bitcoin purchases, the majority of the activities seen over the weekend were driven by retail investors. This was made possible with the exchange’s unrestrictive availability.
Will Bitcoin Ever Get to Sleep?
Bitcoin and the markets it represents are still relatively young and as such, the regulations that guide activities in the markets are neither mainstream nor are they work in progress. This is so because every country reportedly has its personal biases or perceptions about BTC and cryptocurrencies. These biases currently shape the permissible operations of the exchange activities in each region and by extension, Bitcoin and cryptocurrencies.
Perhaps, Bitcoin and the cryptocurrency markets in the near future will get to see such regulations and standardization that will restrict their trading activities to certain days of the week, but until then, Bitcoin investors particularly the small retail holders can take advantage of the fact that their darling premier digital currency does not go to bed.