$EVAA # Factors Influencing Cryptocurrency Market Volatility During Weekends

Volatility in the cryptocurrency market during weekends is driven by several key factors that operate even with lower institutional activity.

## 1. **Low Liquidity**

During weekends, many traditional markets are closed, and institutional traders reduce their participation. This decreases the total volume on exchanges, making the market more sensitive to large orders. A single significant sale or purchase can lead to disproportionate price movements.

## 2. **Chain Liquidations**

With less depth in the order book, technical support and resistance levels can be more easily breached. This triggers automatic liquidations in leveraged positions, resulting in rapid drops or rises that spread like a domino effect.

## 3. **Unplanned Events**

Unexpected news —such as regulations, hacks, statements from influential figures, or technical issues— has a greater impact during the weekend because there is less conflicting information circulating. The reaction tends to be more emotional and swift.

## 4. **Ongoing Global Activity**

Unlike traditional markets, cryptocurrencies operate 24/7. While the U.S. is on the weekend, regions like Asia remain active. Changes in sentiment, monetary policies, or capital movements in countries like Japan, Korea, or India can directly influence without waiting for Monday.

## 5. **Expectations Before Week's Start**

Many traders adjust their positions before the weekend closes or prepare entries for Monday. This anticipatory behavior can generate speculative movements that temporarily distort the price.