Bitcoin's average returns take a hit on Fridays, dropping by more than 1 percent compared to other weekdays. This trend stands out over recent weeks, marking Friday as the poorest performing day for crypto traders.
The weekend tells a different story, with positive returns and Tuesday leading gains. Mondays and Wednesdays also lean slightly negative, but they don't come close to matching Friday's consistent declines.
One reason could be the risk management habits of major market players. Institutional investors often reduce their exposure before traditional markets shut for the weekend. This happens alongside the expiration of many crypto derivatives contracts on Fridays, which can ramp up selling pressure.
These factors combine to amplify price drops that might otherwise stay minor. The interplay between leveraged position closures and profit-taking ahead of two days without regular trading adds to the market's wobbles before the weekend.
