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Bitcoin’s 24/7 liquidity: Double-edged sword during global market turmoil

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Bitcoin and other cryptocurrencies are often praised for offering around-the-clock trading access, but that constant availability may have contributed to a steep sell-off over the weekend following the latest US trade tariff announcement.

Unlike stocks and traditional financial instruments, Bitcoin (BTC) and other cryptocurrencies enable payments and trading opportunities 24/7 thanks to the accessibility of blockchain technology.

After a record-breaking $5 trillion was wiped from the S&P 500 over two days — the worst such drop on record — Bitcoin remained above the $82,000 support level. But by Sunday, the asset had plummeted to under $75,000.

Sunday’s correction may have occurred to due Bitcoin being the only large tradable asset over the weekend, according to Lucas Outumuro, head of research at crypto intelligence platform IntoTheBlock. 

“There was a bit of optimism last week that Bitcoin might be uncorrelating and fairing better than traditional stocks, but the [correction] did accelerate over the weekend,” Outumuro said during Cointelegraph’s Chainreaction live show on X, adding:

“There’s very little people can sell on a Sunday cause most markets are closed. That also enables the correlation because people are panicking and Bitcoin is the largest asset they can sell over the weekend.”

Outumuro noted that Bitcoin’s weekend trading can also have upside effects, as prices often rally in calmer conditions.

Related: Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Bitcoin initially “decoupled” from traditional assets after the US stock market saw a $3.5 trillion drop on April 4 as US Federal Reserve Chair Jerome Powell said the Trump administration’s “reciprocal tariffs” could significantly affect the economy and lead to higher inflation.

However, Bitcoin fell below $75,000 on April 6 as the panic from traditional markets spread to cryptocurrencies over escalating trade war concerns.

Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes

Most Bitcoin investors are “all in” and overleveraged — Adam Back

Adding to Bitcoin’s 24/7 trading mechanics, numerous Bitcoin holders are overleveraged, according to Blockstream CEO Adam Back.

Speaking during a fireside chat with Cointelegraph managing editor Gareth Jenkinson at Paris Blockchain Week 2025, Back said:

“The problem with the Bitcoin market is most of the people who are into Bitcoin are all in. So they’ve got no money. And worse, some of them are leveraged or overleveraged and it trades 24/7.”

Adam Back during a fireside chat with Cointelegraph’s Gareth Jenkinson. Source: Cointelegraph

“On a weekend, there’s not much volume. So you have a worse risk of rapid sort of flash crashes or flash dips that get filled in again,” he said.

Back also reiterated his belief that Bitcoin will rival gold over the next decade as a hedge against rising monetary inflation.

Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29

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