Key Takeaways:
- Bitcoin trades 24/7, unlike U.S. markets closed on federal holidays.
- Holiday liquidity thins, amplifying volatility and price swings in crypto trading.
- Quieter U.S. institutional flows boost influence of options, momentum, order books.
Bitcoin trades on 24/7 crypto markets even when U.S. banks, offices, and equity exchanges are shut for federal holidays. That structural difference means Bitcoin holiday trading can move independently of traditional market hours.
Holiday sessions often feature thinner U.S. participation, which can magnify price swings as liquidity recedes. As reported by The Economic Times, lower liquidity tends to push volatility higher during closures, raising the risk of outsized intraday moves (economictimes.indiatimes.com).
Institutional spot flows tied to U.S. infrastructure, including ETF channels, are typically quieter when exchanges are closed. According to WalletInvestor Magazine, that lull can leave options positioning, momentum, and order-book dynamics with greater influence than usual (walletinvestor.com).
U.S. stock markets were shut Monday for Presidents Day and reopen Tuesday; during the break, Bitcoin slipped, according to TS2 (ts2.tech). That timing left price discovery largely to offshore trading hours while U.S. desks were inactive.
Bitcoin fell below $70,000 on Monday, extending a multi-week downturn amid interest-rate uncertainty, as per Economies.com (economies.com). The move marked a continuation of pressure observed over recent weeks rather than a standalone shock.
Low-volume conditions also sparked short-term volatility that cleared both long and short positions, as reported by Cointelegraph via TradingView (tradingview.com). Such order-flow โliquidity gamesโ are consistent with low-liquidity volatility episodes seen during prior U.S. holidays.
Some strategists framed the holiday action within seasonal and technical context. โOversold,โ said Jonathan Krinsky, chief technical strategist at BTIG, describing Bitcoinโs setup into the holiday week.
Macro releases could reassert themselves once U.S. markets resume full participation. BeInCrypto reported that four U.S. indicators this week, including Federal Reserve FOMC minutes and PCE inflation, could drive Bitcoin volatility after the holiday (beincrypto.com).
Disclaimer: CoinLineup.com provides cryptocurrency and financial market information for educational and informational purposes only. The content on this site does not constitute financial, investment, or trading advice. Cryptocurrency and stock markets involve significant risk, and past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
About the author
Bitcoin slips in holiday trade as liquidity thins
Bitcoin holiday trading sees thin liquidity and swings as derivatives positions reset; analysts cite FOMC minutes and PCE when U.S. markets reopen Tuesday.
U.S. economy steadies as tariff risks test inflation
IMF data frames tariff-price effects and alliances in: Trump economy fact check, U.S. national security strategy 2025, tariffs impact on inflation review
Bitcoin exposure cut 21% as Harvard adds Ether ETF
Harvard Management Company cut Bitcoin ETF holdings by 21% and disclosed an $86.8M Ethereum ETF stake; analysts cite diversification needs and volatility risks.
Ethereum records outflows as XPL draws 24h inflows
According to flow data from CoinShares and Glassnode, Ethereum outflows, XPL inflows, 24-hour crypto flows reflect rotation across funds and exchanges.
DeFi spot volume rises since 2026 start amid flow shifts
DefiLlama and Kaiko data review early 2026 DEX-to-CEX share and stablecoin flows to verify the rise in DEX spot volume; method and caveats noted in datasets.
U.S. data center power use rises; DOE/EPRI 2028โ30 outlook
Data shows U.S. data center electricity consumption rising from the 2023 DOE/LBNL baseline; EPRI forecasts detail AI-driven 2028โ30 impacts on grids and rates.
Related
U.S. economy steadies as tariff risks test inflation
IMF data frames tariff-price effects and alliances in: Trump economy fact check, U.S. national security strategy 2025, tariffs impact on inflation review
Bitcoin exposure cut 21% as Harvard adds Ether ETF
Harvard Management Company cut Bitcoin ETF holdings by 21% and disclosed an $86.8M Ethereum ETF stake; analysts cite diversification needs and volatility risks.
Ethereum records outflows as XPL draws 24h inflows
According to flow data from CoinShares and Glassnode, Ethereum outflows, XPL inflows, 24-hour crypto flows reflect rotation across funds and exchanges.
DeFi spot volume rises since 2026 start amid flow shifts
DefiLlama and Kaiko data review early 2026 DEX-to-CEX share and stablecoin flows to verify the rise in DEX spot volume; method and caveats noted in datasets.
U.S. data center power use rises; DOE/EPRI 2028โ30 outlook
Data shows U.S. data center electricity consumption rising from the 2023 DOE/LBNL baseline; EPRI forecasts detail AI-driven 2028โ30 impacts on grids and rates.
Bitcoin draws institutional flows as ETFs gain traction
ETFs and custody rules are speeding institutional adoption of crypto, data shows, as users shift to ETFs and tokenized funds, reshaping market structure.