Why Bitcoin Could Rally on a U.S. Federal Holiday With Stock Market Shut
Bitcoin2020/05/22 22:00 by Tony Spilotro
This weekend and on Monday, trading desks across the stock market and other traditional markets will be shut down. But Bitcoin and the rest of the crypto market never stops.
With the stock market closed, less to do, and traditional celebrations next to impossible due to lockdown conditions, it could keep more traders at home, driving an increase in interest in Bitcoin and other crypto assets.
Stock Markets Close For Memorial Day Weekend, But Crypto Never Sleeps
This coming Monday, and all throughout the weekend, the United States will celebrate the Memorial Day holiday and pay respects and remember those brave military personal who lost their lives fighting for freedom.
Out of respect also, and to give traders a break from the tense, shark-infested markets to celebrate with family members, many traditional markets close for the long, three-day holiday weekend.
Related Reading | Research Shows That Holidays Cause FOMO Fireworks in Bitcoin Price Charts
Major US stock indexes and markets are closed. And there’s a bank holiday coinciding in the UK that will see the London Stock Exchange and the FTSE index shut down.
The pandemic boredom has left individuals with time on their hands, and the allure of extreme volatility and therefore profits have caused a massive spike in new trader registrations amongst millennials.
The lockdown conditions caused by the pandemic means that there will be fewer parades, fewer celebrations and gatherings, and fewer home barbecues. This leaves traders with more time on their hands over the weekend to trade, but only the cryptocurrency market is open.
The only action taking place this weekend will exist for Bitcoin and altcoin traders.
More Past Memorial Days Have Pumped Than Dumped
Bitcoin also has some of the most volatile price action over weekends, due to lower liquidity. Data has also shown in the past that holidays are often associated with Bitcoin FOMO.
The last several years’ worth of Memorial Days have been highlighted on the below chart.
Starting in Memorial Day 2017, Bitcoin saw a strong drop but later rose roughly $2,000 to $20,000 in the months ahead that year.
In 2018, Bitcoin some temporary upside before a bigger drop and bottoming formation was attempted.
Related Reading | Sell in May and Go Away? A Look At Historic Bitcoin Price Performance in May
Next, in 2019, Bitcoin price was trading at the same exact price level as it is currently – a whole year later. After a short-lived dip, the cryptocurrency rocketed to $14,000. Could the same thing happen following the price action this weekend?
The data set is small, and there’s no real rhyme or reason to if, why, or when Bitcoin pumps during holidays or after. The small set of data has shown more upside than downside following each Memorial Day weekend – but what will happen this weekend across the crypto market?
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