As an experienced financial analyst, I have observed that the crypto market is uniquely positioned to remain active during traditional market holidays like the US Memorial Day. The decentralized nature of blockchain transactions and the incentivization model for confirming transactions make the crypto market a round-the-clock trading ecosystem.
The United States is approaching a extended three-day weekend with Memorial Day falling on May 27th. This national holiday signifies a shutdown for many brokerages across the country, with the exception being the cryptocurrency market.
Crypto Market Designed For Round the Clock Trading
During Memorial Day in the United States, when traditional financial markets take a break, the crypto market continues to buzz with activity. Ever since Bitcoin‘s inception, this digital currency has been a go-to for traders on weekends and holidays.
Through blockchain technology, transactions can be designed to bypass intermediaries and instead settle directly on the network. This is facilitated by an active community of miners or validators in the crypto ecosystem who confirm transactions continuously. The specific consensus model of each protocol dictates whether mining or validation is employed.
As a market analyst, I’d describe the crypto market’s activity as being driven in part by its unique incentive model that encourages users to confirm transactions. This self-sustaining reward system keeps the market well-structured and vibrant. With Memorial Day in the US taking place now, here are three significant trends worth monitoring closely:
Increased Volatility
The cryptocurrency market is expected to display significant price fluctuations due to the large inflow of investment from crypto owners and Traditional Finance (TradFi) professionals. Consequently, trading volumes in cryptocurrencies will likely surge, resulting in noticeable price changes.
Intense volatility may continue in the derivatives market for most cryptocurrencies. A significant portion of the funds entering the market could come from traditional financial markets, which could be withdrawn once the stock market reopens on Tuesday.
Bitcoin Slump To Taper Down
For those who have been keeping up with the digital currency market, it’s common knowledge that the majority of assets, with Bitcoin leading the way, tend to experience price drops over the weekend. However, this upcoming weekend might bring about a shift in trend. Instead of the customary decline that pulls down the values of other altcoins in tandem, this coin could exhibit strength and forge its own path.
Currently, Bitcoin is being traded at the price of $69,118.10, representing a 3.06% increase over the previous 24-hour period.
CME Gap To Widen More
Another significant trend to monitor is how the US Memorial Day holiday will impact the Bitcoin CME gap. The CME gap refers to the variance between the final Bitcoin futures settlement price at the CME exchange’s close on Fridays and the opening price on Sundays.
During the extended weekend, the price difference between buying and selling could increase, potentially influencing market values in the upcoming week.
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2024-05-24 21:36