Friday is described by market observers as a typically volatile and downside-prone trading day. This phenomenon is not uncommon in financial markets, especially in the cryptocurrency market and the stock market. Friday's movements are more often considered to be specific. risk factors.
1. Investors take profits
Many investors will choose to sell positions on Friday to lock in margin for the week. , short-term investors will clear their positions on Friday, which will lead to increased selling pressure in the market, which in turn will lead to price increases.
2. Weekend uncertainty
The market is closed for two days on weekends, which means that it is likely that external events will not be immediately available for a period of time. Many investors chose to reduce their positions on Friday, which also increased the selling pressure on the market.
3. Weekend effect
The "weekend effect" is a common theory in financial markets, which states that the stock market or cryptocurrency market tends to perform poorly on the trading day before the weekend (usually Friday). There were concerns about possible bad news during the period, leading to increased selling.
4. Institutional fund adjustment
Financial institutions tend to make capital adjustments on Fridays, which also affects market performance. Word of mouth, such behavior often increases stress.
5. Technical indicators and periodicity
There are also some opinions in technical analysis that some technical indicators performed relatively poorly on Friday. Volatility factors could support Friday's downtrend.
6. Influence of global macro factors
The impact of global political, economic and social events is usually more pronounced on Fridays. fell.
in conclusion
To sum up, the phenomenon of market decline on Friday is prone to be affected by a variety of factors, including the end of investor profits, uncertainty over the weekend, institutional funding adjustments, and cyclical market fluctuations. But based on historical performance and the market, Friday is indeed considered one of the riskier trading days.