Bitcoin volumes reportedly increased more than doubled just in a week
Arcane Research firm published a report on Jan. 9 revealing that Bitcoin (BTC) trading volumes rise more than doubled in a week.
According to the report, the 7-day average daily trading volume has seen a 126% increase in a week at the start of 2020, with almost $1.5 billion traded just on Jan. 8, so much higher than $192 million traded on Jan. 1.
Crypto market is having more positive indicators
The researchers also highlight that the Crypto Fear & Greed Index shown on software website Alternative.me has been steadily increasing since mid-December and on Jan. 6, which touched neutral levels for the first time since October.
The report also states that Bitcoin’s volatility is growing alongside its price and is currently climbing the 3% level. Although maintaining the fear in the last couple of days, the market is certainly getting more bullish.
The index’s website explains that buying opportunity is when volatility reaches an extreme fear point, it means that investors are too worried, while when the tool presents extreme greed the market is probably due for a correction. The indicator obtains its reading from market momentum, volatility, and volume, social media, surveys, Bitcoin crypto market dominance, and Google trends.
Is Bitcoin a safe shelter?
The researchers also suggest that the tensions between Iran and the United States led to Bitcoin’s correlation with gold to levels that have not seen since August 2016. While the authors of the report stated that it is way too soon to draw any firm conclusion, they also stress that major events in the new conflict were the factors caused a positive reaction by both gold’s and Bitcoin’s price.
The paper reads that the ‘safe haven’ of Bitcoin is starting to become true. However, this short-term price action could also just be a spurious correlation and we still have to consider a long-term evaluation.
A recent analysis believes that Bitcoin is more useful to the Iranian as the conflict continues.
More people adopt Bitcoin
Finally, it is worth noting that the activity on Bitcoin’s blockchain also showed a revival, with the number of transactions going up to 5% in a week as the transaction value grew by one-fourth over the same period of time. Moreover, miner fees increased by over 40% and the number of active addresses increased by about 7.63%.
Bitcoin’s news is becoming increasingly bullish as recent reports show more positive for the cryptocurrency. It can deliver 100% returns to investors in 2020 and may rise significantly in the five months until May’s block reward halving.
Interest in the asset is seemingly rising and the United States’ largest bank believes interest will be high in CME Group’s new Bitcoin options.