Why Bitcoin Often Falls Sharply on Weekends

• Bitcoin trades 24/7, making it the easiest asset to sell on weekends.
• Hedge funds sometimes sell Bitcoin to raise cash before potential Monday margin calls.
• Lower weekend liquidity means even moderate selling can trigger larger price swings.

Bitcoin has faced intense volatility in recent weeks, dropping near $60,000 after trading near the $100,000 level not long ago. Analysts say the sharp swings show a mix of market uncertainty, institutional repositioning, and recurring weekend selling pressure. At the time of writing, Bitcoin is trading below the $70k mark.

Bitcoin markets operate 24/7, unlike traditional financial markets that close on weekends. This constant trading availability makes Bitcoin especially vulnerable to sudden weekend price drops when investors need quick liquidity or react to market uncertainty.

Bitcoin Becomes the Easiest Asset to Sell for Cash

Market analyst James Lavish explains that the main reason for weekend declines is liquidity. When investors or hedge funds urgently need cash while traditional markets are closed, Bitcoin is often the fastest asset they can sell.

As Lavish said, “The easiest thing, the most liquid thing is to sell Bitcoin… if you need to raise cash.” Because stocks, bonds, and many other assets cannot be traded easily during weekends, Bitcoin effectively becomes the market’s “emergency liquidity” tool.

Hedge Funds and Margin Risks Add Pressure

Large institutional investors frequently treat Bitcoin as a risk asset similar to technology stocks. When market stress increases or negative news emerges, funds sometimes reduce exposure quickly. This selling can accelerate on weekends if managers fear potential margin calls when markets reopen.

Lavish described the process: “You sell what you can, not what you want to.” If lenders increase collateral requirements during market turbulence, funds may sell Bitcoin first to ensure they have enough cash before Monday trading begins. This forced selling can trigger a cascade of liquidations and push prices down further.

Early Investors Taking Profits Also Influence Declines

Another factor behind recent volatility is profit-taking by early Bitcoin adopters. Many early holders accumulated large positions years ago at extremely low prices and began selling after Bitcoin crossed major milestones such as $100,000. These large sales increase supply in the market and can amplify downward movements during already weak trading periods like weekends.

Lavish said that some long-time investors who held Bitcoin for years are now selling portions of their holdings to buy real estate or other assets, adding to short-term selling pressure.

Despite short-term swings, the analyst continues to view Bitcoin as a scarce digital asset with a fixed supply and decentralized network, meaning weekend declines are often driven more by market mechanics than by fundamental changes in the asset itself.

Related: Robert Kiyosaki’s Bitcoin View Centers on Supply Limits as Market Fear Intensifies