Even though we are only a handful of days in 2020, the bitcoin market seems to already be shaking up and this includes an increase in price to break above $8000 per token, recaps of the trading patterns of 2019 as well as expectations for the coming year. In some cases, the first few weeks of the year go onto set the tone for the rest of the year in terms of the financial world and because of this, many are watching the bitcoin markets during this time for clues on how the market will react over the next few months of 2020.
According to a January 9, 2020 report by arcade research, bitcoin transaction volume doubled after the first week of 2020 to see a 126 percent increase.
According to the reports, bitcoin’s seven-day transaction volume doubled in the second week of 2020 by 126 percent and on January 8, 2020, $1.5 billion was added to the total transaction volume across the globe.
“The market recovered sharply from the disappointing $192 million that were traded on Jan. 1,” the report says.
Besides this, the Crypto Fear and Greed index has been steadily rising since mid-December 2019 and hit neutral levels on January 6, 2020. Along with this, it is said that the volatility of the bitcoin price has been rising along with the price since 2020.
“Although falling back to fear in the last couple of days, the market is certainly getting more bullish,” the report says.
There are a number of possible reasons for this rallying of the bitcoin price, and some point to the recent tensions between the United States and Iran which is leading to many who are affected to store their wealth in the form of cryptocurrency due to the current political instability. It has previously been stated that cryptocurrency can serve as a form of relief for those going through troubled times but it is currently too early to tell.
“The ‘safe haven’ narrative for Bitcoin is starting to become true. However, this short-term price action could also just be spurious correlation and a long-term evaluation must be taken into consideration,” the report says.