Bitcoin trading volumes surged 126 percent in the first week of 2020 due to price suppression in December, according to a recent report by Arcane Research.
The research firm stated that the 7-day average daily trading volume reached nearly $1.5 billion on January 8, compared with $192 million at the beginning of 2020.
The cryptocurrency had been moving sideways during the last six months, the data unveiled by San Francisco Open Exchange (SFOX) showed.
Although the market witnessed historical volatility of more than 70 percent at the beginning of 2019, the BTC ended out the year at around 32 percent.
The BTC rose to $8,400, and then fell to $7,600. It is currently traded at $8,100, as per BitcoinPrice.com.
The number of transactions rose 5 percent, and miner fees jumped more than 40 percent. Moreover, the number of active addresses rose by nearly 7.63 percent.
“Although falling back to fear in the last couple of days, the market is certainly getting more bullish,” Arcane researchers said. “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.”
They added that Bitcoin’s correlation with gold reached levels not seen since August 2016 on political developments between the United States and Iran. “These major events in the new conflict caused a positive reaction by both gold’s and Bitcoin’s price.”
US President Trump ordered a strike near the Baghdad airport, which led to killing Iranian General Qasem Soleimani. Iran, in return, has fired a missile strike on a US base in Iraq.
Trump told reporters that no soldiers were killed in the Iranian barrage. “All is well! Missiles launched from Iran at two military bases located in Iraq,” Trump tweeted.