Market research firm Arcane Research reveals that the first week of 2020 had seen a remarkable increase in Bitcoin trading volumes. In a recently-published report, the firm emphasized the sharp recovery that was exhibited by the crypto market from January 1 to January 8.
Notably, the first day of 2020 closed with $192 million, a disappointing performance according to analysts and spectators. However, in just a week, BTC’s trading volumes manage to climb with fantastic speed, hitting $1.5 billion on January 8. As written in the report, the surge accounts for 126%.
Arcane Research also included in the report the findings of Alternative.me, a platform that optimizes connections between software and product alternatives.
The report also emphasized Bitcoin’s increasing volatility. According to the document, it is now at the 3% level and climbing. As further explained, when the index displays extreme fear, investors get worried, which opens doors for buying. In contrast, when the index indicates excessive greed, investors tend to think that the market is due for a correction.
Notably, the website uses a variety of indicators. The list includes BTC’s dominance in the market, volatility, volume, market momentum, surveys, social media, and Google trends. As concluded in the latest reading, the Bitcoin market continues to show signs of bullishness.
Another interesting part of the report is the claim that the ongoing political tension between the United States and Iran had brought BTC to a level closely correlated with gold. Notably, this comparison was last seen in August 2016.
It is no secret that Bitcoin supporters see the cryptocurrency as a safe haven. Judging by the conflicts brought by major global events and the reaction of the crypto players based in Iran, the narrative is starting to become true. However, the researchers pointed out that it is still too early to conclude as the remarkable price action might just be a fake correlation. Notably, further evaluation still needs to be done.
The upward tick in crypto mining activities
Arcane Research also took the time to analyze the surge of activities on Bitcoin Blockchain. According to the report, there had been a 5% increase in the number of transactions recorded on the network. Furthermore, miner fees surged by more than 40%. The same pattern was seen on the number of active BTC addresses, which climbed by about 7.63%.
The positive reports regarding the performance of the world’s leading cryptocurrency all lead to one thing –a bullish market. According to Fundstrat Global Advisors, investors can gain 100% returns on their Bitcoin investments, or even more as the crypto’s halving in May 2020 approaches.
We published our 2020 Crypto outlook and made the full report available for our clients.— Thomas Lee (@fundstrat) January 10, 2020
– bottom line: financial markets tend to discount 1-3 months, and maybe 6 months (max). So highest probability is halvening not priced in
Cc: https://t.co/YRDQQ7TSzv $BTC #bitcoin #BTFD pic.twitter.com/i6sOIVQoc0