@everyone

Why is the Market Volatile on Monday?

Surely some of you are wondering why after Monday the market tends to be volatile, which (usually) on other days there is no similar dynamics and at the weekend the market tends to be "calm". The following are the reasons why Monday tends to provide volatility to the market:

#1Asian Market Effect.

Monday morning is the Asian market session, namely countries such as South Korea, Japan, and also China which are able to provide market price movements that affect sentiment. The Asian market session can be the most active session in crypto.

#2Traders Do Weekly Rebalancing.

Many traders and institutions rebalance their portfolios at the beginning of the week, especially to adjust their performance from the previous week. When many traders rebalance their portfolios, there is the potential for the market to experience volatility.

#3Institutional Buying and Selling Actions.

Many institutions take a break from buying and selling their funds on weekends (Saturday and Sunday), they usually continue making purchases at the beginning of the week. That is why when starting the week on Monday the market tends to start making significant movements.

#4Liquidation Event.

Crypto is a market full of leverage where when Monday there is high trading activity from institutions, there is also the potential for various retail traders who trade to be potentially liquidated from the positions they open due to high institutional buying and selling actions.