As the world remains in crisis over the recent conflicts between the U.S. and Iran, looking at Bitcoin price, we can say that the major cryptocurrencies experiences one of the best weeks in recent years.
Bitcoin Trading Volumes through the Roof in 2020
Bitcoin has been around for a while and has seen its ups and downs, leaving the public constantly questioning the direction this popular cryptocurrency will go next. We have seen incredible spikes in value as well as quick drops, which has left many investors choosing to stay away from the gamble of trading Bitcoin.
With a new year starting, the value and trading volumes of Bitcoin are once again a hot topic. A recent report published by Arcane Research has concluded that the first week of 2020 has been a massive success for Bitcoin in terms of trading volume, which has more than doubled, seeing a 126% increase, with over $1.5 billion in trades made on January 8th alone.
Bitcoin enthusiasts may have been taken aback by the trades on the first day of the new year, which stood at only $192 million, as the report reads. Yet, this all changed quickly within the next few days, with traders back to work and Bitcoin back to growing as a stable cryptocurrency.
If you are looking to invest in Bitcoin, keep reading, and find out how the currency is doing and just what we might expect from it in the coming months. Those who prefer a quicker gamble may instead want to try learning how to play the game of roulette, for example.
Volatility of Bitcoin Increasing with Value
Alternative.me has created a fantastic software that tracks the current trends in the Bitcoin market. Their fear and greed index is a great way of monitoring how investors are currently looking at Bitcoin, with a chart that quite clearly shows just how worried or relaxed buyers seem to be about purchasing the currency at any given time.
According to this software, Bitcoin has been steadily growing in value over the last month of 2019 and the early days of 2020, with January 6th being the first day it touched a neutral level since October. That said, some fear among investors has led to Bitcoin standing at close to 3% in volatility, which is to be expected.
The index goes on to explain that when it moves towards fear, it means that investors are less likely to buy and are timid about trading Bitcoin. On the other hand, the greed side of the index indicates that investors are eager to buy and happy to invest in Bitcoin at a given moment.
Activity Grows in the Midst of Crisis
The recent tensions between the U.S. and Iran seem to have had some influence on the rise in Bitcoin trades and activity. However, it is yet not possible to extrapolate exact statistics on it. While it may appear evident that there is a direct correlation between this rise and the conflict, experts advise caution in making such conclusions, as only a long term analysis can prove whether such a correlation exists or not.
According to the Arcane Research report, Bitcoin’s blockchain has been booming over the last few days. The number of transactions made has increased by 5%, along with other relevant parameters such as a number of active addresses, which has gone up by 7.63%.
Some reports are indicating that the time to invest in Bitcoin may be just now, as the currency is becoming ever more bullish and showing no signs of dropping down. Significant profits may be in store for those who invest early in 2020, but as always, investing in cryptocurrencies remains a considerable risk.
Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.