✅ The main reasons behind the decline of cryptocurrencies every Thursday
1. Weekly derivatives expiry
Every Friday, thousands of futures and options contracts on cryptocurrencies (especially Bitcoin and Ethereum) expire.
What happens on Thursday is that the market starts adjusting its positions in preparation for this expiration, causing volatility and selling pressure.
Major investors (whales) try to steer the market in their favor before contract expiration.
📉 Result: Significant selling pressure on Thursday due to adjustments and hedging.
2. Weekly profit-taking
Many traders (especially small funds) take profits before the weekend.
Thursday is the preferred day for this exit because it gives them a chance to reposition before Friday when liquidity decreases.
3. Low liquidity from Thursday evening to Sunday
Global markets are less active from Thursday evening to Sunday, making the market susceptible to sharp jolts with any selling pressure.
Whales exploit this time gap to push the market down and then buy at a lower price.
4. US economic announcements and reports
Thursday often witnesses:
Weekly US unemployment data (Initial Jobless Claims)
Or statements from the US Federal Reserve
This data immediately affects the dollar and the markets, thus putting pressure on crypto.
🔁 Practical example:
In recent weeks:
Almost every Thursday, there is a liquidation of large positions in futures.
In some cases, more than $100 million was liquidated within hours.
📌 Conclusion:
The reason impact on the market
Expiration of weekly contracts leads to preparatory selling pressure
Profit-taking is a temporary correction
Low liquidity facilitates declines
Economic news suddenly changes the mood