"Market for BTC always drops on Friday because BTC is closed to many of the bigger overseas markets. It jumps again on Monday when US markets open and people log on to Silk Road to buy their [paraphernalia]. "
Note: As far as I am aware, Huobi and other markets are open 24/7. So I have no idea what the trader here means that "BTC is closed to many of the bigger overseas markets."
Comments
xtraeme
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I agree with the first part of your comment. That is why I originally added the note at the bottom and plotted it out to show the net effect was neutral. However I think you are behind the times when it comes to the Silk Road. Not long after the Silk Road shutdown another marketplace opened called the Silk Road 2. I have no idea how trafficked the new site is, but I assume between it and the copycats that there is still a thriving underground.
Anyhow, that is neither here nor there. At this point I imagine sites like Overstock and TigerDirect dominate bitcoin transactions ( blockchain.info/charts/n-transactions-excluding-popular?timespan=all&showDataPoints=false&daysAverageString=7&show_header=true&scale=0&address= ). Since most retail outfits use bitpay and bitpay immediately converts back to the vendors native fiat currency. That eventually pushes the bitcoin price down. Assuming regular purchasing habits, at some point the customer would have to buy back in. It is probably fanciful to think that there would be a simple weekly pattern behind this, but the idea was interesting enough that it warranted a look.
devlspawn
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I can't think of a single market that is closed over the weekend, and there is no such thing as Silk Road anymore. Even if the Friday drop is real the reasoning is ludicrous.
Anyhow, that is neither here nor there. At this point I imagine sites like Overstock and TigerDirect dominate bitcoin transactions ( blockchain.info/charts/n-transactions-excluding-popular?timespan=all&showDataPoints=false&daysAverageString=7&show_header=true&scale=0&address= ). Since most retail outfits use bitpay and bitpay immediately converts back to the vendors native fiat currency. That eventually pushes the bitcoin price down. Assuming regular purchasing habits, at some point the customer would have to buy back in. It is probably fanciful to think that there would be a simple weekly pattern behind this, but the idea was interesting enough that it warranted a look.