Hi guys, it feels so good to finally clear the requirements for making a post! I have only recently been exposed to crypto but I have tried to absorb it as soon as I could. I am trying to understand the technology, the community and the trends surrounding this mythical beast. I am happy to share with you one of the interesting things I learned during this weekend!

Cryptocurrency is volatile as we all have come to know but did you guys observe that usually the prices plummet during weekends? Yes this is an actual phenomena - and it is known as the Sunday Effect! And as it turns out there is a reasons behind this. Allow me to share few of the things I learned while I was researching today. This is not really an OC as I have included snippets from a news article!

There are primarily two reasons behind this but there is also a speculation (pt. no. 3) which can also have an effect in this phenomena but best to take the third with a bit of a salt:

1. Less trading during weekends: Banks remain closed over the weekends, and there is often less trading as investors may not be able to add money to their accounts. This, in turn, results in low volume trading, during which the same trade size can move prices a lot more.
2. Trading on margins: When prices dip below a certain level, traders trading on margins (i.e., borrowing money from the exchanges to buy more assets) must repay the loan, known as a "margin call." But if investors don't cover the loan, exchanges may sell the digital assets to ensure they receive the borrowed money back. With banks closed over the weekend, some traders struggle to pay off the borrowed funds as they can't move money into their accounts, triggering sell-offs from exchanges.
3. Market manipulation (it's more of speculation): Many studies indicate that market manipulation influences crypto prices. A case in point is a 2019 research showing how tether may have artificially inflated bitcoin and other cryptocurrency prices during the 2017 boom. But researchers still aren't sure about the extent to which this manipulation happens. One theory pointing to spoofing suggests executing fake buy or sell orders to influence cryptocurrency prices by creating a false sense of supply and demand. Some believe this happens more often during the week, causing digital currency prices to rise. But this theory may well only be speculation as experts have mixed opinions on this.

So what does this mean for me? Well this means that if you want to optimally use the DCA strategy, investing during weekends can probably gain you more! Hopefully someone was able to learn something today!

Do let me know what do you think guys!