This seemingly simple question actually involves many factors. Next, Ruyi will take stock of the various factors that lead to sideways trading.


1. The linkage effect of the global market
1. Impact of mainstream financial markets
The cryptocurrency market is closely connected to the traditional financial market. On Sundays, most of the world's major stock and foreign exchange markets are closed. For example, the New York Stock Exchange and Nasdaq in the United States stop trading on weekends. Institutional investors and large trading teams usually get involved in multiple financial markets at the same time. When the traditional financial market is closed, the funds and energy they invest in the cryptocurrency market will be reduced accordingly. Due to the lack of large capital drive and long-short game, the cryptocurrency market tends to be flat.
2. Limitations of the international payment and settlement system
In the international financial system, payment and settlement institutions operate more laxly on Sundays. Large transfers between banks and cross-border payments are restricted. Cryptocurrency transactions often involve large-scale capital inflows and outflows. When capital allocation and settlement cannot proceed smoothly, professional traders and market makers will reduce operations on Sundays, leading to a sluggish market.
2. The characteristics of the cryptocurrency world
1. Participant Structure
The composition of participants in the cryptocurrency circle is relatively complex, including individual investors, small trading teams, mine owners, and project owners. Among them, many people invest part-time, and on Sundays they often have private life affairs to deal with and have no time to pay attention to the market, which reduces trading activities. In addition, small trading teams are often not fully staffed on Sundays, making it difficult to continuously analyze the market and make trading decisions, which also leads to a reduction in trading activities.
2. Project release and update rhythm
Most blockchain projects in the cryptocurrency world choose to make major updates and releases on weekdays. This is because the project owners need to communicate and collaborate with the technical team and partner organizations in a timely manner. On Sundays, the pace of work of the project owners will slow down, and factors that can stimulate the market, such as new progress and application landing, will be greatly reduced, making it more difficult to stimulate the market.
3. Correct understanding of “two-day weekend for traders”
The operations of large and formal trading institutions are based on data analysis, trend judgment and risk control. Their reduction of operations on Sundays is the result of comprehensive consideration of the market environment and internal operations, not a simple "two-day weekend" concept. Small groups that conduct improper operations are unlikely to dominate the cryptocurrency market, because the cryptocurrency market is a global and decentralized market. If individual groups want to make profits through abnormal operations on Sundays, they will face many risks such as reverse operations by other participants and market mechanism constraints.
IV. Conclusion
The lack of market in the cryptocurrency market on Sunday is the result of the combined effect of multiple factors. Newbies' understanding of these factors will help them view market fluctuations more rationally and avoid unrealistic speculation and unreasonable trading strategies.