Global holidays — whether it’s New Year’s, Christmas, Chinese New Year, or other significant dates — noticeably impact financial markets, including the cryptocurrency market. Although crypto operates 24/7 without breaks, trading volumes and volatility tend to change during holiday periods. In this article, we’ll explore how holidays influence crypto market activity and why tracking these periods with a crypto calendar is important.
Decline in trading volumes
During major holidays, most institutional traders and large investors reduce their activity as markets typically slow down. This leads to lower trading volumes on crypto exchanges. Reduced liquidity can cause sharper price swings since there are fewer participants to smooth out these movements.
Increased volatility and unpredictability
Lower trading volumes and fewer active traders often result in higher volatility. During holidays, even small trades can trigger significant price changes, increasing risks for traders and investors. This is especially true for less liquid altcoins.
Investor psychology and behavior
Holidays are often associated with rest, vacations, and a change of pace, which affects investor behavior. Some traders prefer to reduce their activity to avoid risks during potentially unstable periods. Others may use holidays to prepare new strategies and analyze the market.
Regional differences
The impact of holidays on the crypto market also depends on geography. For example, the Chinese New Year often brings reduced activity on Asian markets and exchanges with many Asian users. Similarly, Christmas holidays affect Western markets.
How a crypto calendar helps track holiday impacts
A blockchain web3 news calendar includes important global holidays, local festivals, and weekends that influence market activity. By monitoring these dates, traders can prepare in advance for potential changes in liquidity and volatility, plan their trades, and manage risks better.
Conclusion
While the crypto market never sleeps, global holidays significantly affect trading activity, volumes, and volatility. Understanding these patterns and using a crypto calendar helps traders navigate periods of low liquidity and minimize risks. If you want to trade effectively and consider all factors, make sure to account for the influence of holidays on the market.
