The traditional Wall Street weekend routine is being disrupted by the rise of 24/7 crypto trading, allowing traders to hedge and trade continuously, even on weekends. This shift is being driven by the growth of perpetual futures contracts, which are traded on crypto exchanges and provide a way for traders to manage risk and speculate on prices outside of traditional market hours.
As a result, traders are no longer forced to wait until Monday morning to react to market developments, and can instead use perpetual futures to gauge market sentiment and adjust their positions accordingly. While institutional adoption of perpetual futures is still limited, the growth of this market is likely to have a significant impact on traditional finance, particularly in the areas of risk management and price discovery.
As one expert noted, 'Markets will be 24/7 down the road. All markets.' The rise of perpetual futures is also changing the way traders approach the weekend, with many now using this time to hedge and trade, rather than simply waiting for the market to reopen on Monday. This shift is being driven by the need for traders to manage risk and stay ahead of the market, even when traditional exchanges are closed. As the use of perpetual futures continues to grow, it is likely that we will see a significant change in the way traders approach the weekend, and the traditional notion of a 'weekend effect' will become less relevant.