The Unsleeping Cryptocurrency Markets
While the rest of the financial world takes a break on Christmas Day and New Year’s Eve, the crypto markets continue to hum with activity. Crypto brokerage shops, market makers, and over-the-counter trading operations are wide awake, accepting orders and providing liquidity even during the holidays.
A Network of Constant Exchange
In the world of digital assets, the trading never stops. Public ledgers, crypto brokerages, exchanges, and a network of trading entities work together to create a thriving capital market for the industry.
Keeping Liquidity Alive
Liquidity providers such as Wintermute and GSR are committed to staying active, even on Christmas Day. They serve as liquidity providers and manage over-the-counter trading desks, ensuring that the flow of assets never ceases. “Crypto markets never sleep, and neither does Wintermute’s OTC desk,” stated Evgeny Gaevoy, co-founder of Wintermute. He emphasized the global nature of the market, with recognition that in some regions, including parts of Asia, Christmas is a regular working day.
Market Dynamics during the Holidays
Richard Rosenblum from GSR explained that market dynamics during the holiday season can vary. While lower volatility is expected in the base case, the introduction of a volatility catalyst could lead to even more significant price movements as liquidity conditions face greater challenges. “Even with low client activity, portfolios with options and derivatives require continuous risk management and maintenance as the market fluctuates,” Rosenblum added.
Steady Trading for Some, Rest for Others
According to Gaevoy, crypto-native market participants continue to trade throughout the holiday period while traditional finance (TradFi) shuts down their terminals and trading stations. Despite a slightly reduced level of activity on Christmas Day, Wintermute remains a reliable source of liquidity for numerous tokens. “We trade a wide range of assets throughout the year, including Christmas, although the number of unique assets traded may be moderately lower than on other days in December,” Gaevoy said. Additionally, Gaevoy noted an increase in onboarding requests during this time, driven by strategic considerations such as end-of-year tax planning or the need to settle invoices before the new year. These crypto market players are proving that even when the holidays arrive, their dedication to providing liquidity and facilitating trades remains unwavering.