Cryptocurrency experts expected the Bitcoin to show bullish performance at the beginning of 2020 despite the escalating political tensions between the U.S. and Iran, Forbes reported.
The BTC fell below the psychological level of $7,000 early in the first few days of 2020 and then rebounded later.
Technical analysts said the BTC traded volume is currently at its lowest level since April 2019, falling 90% from its high in June 2019. They added that when traded volume is low, markets will likely see volatility.
Analysts at Arcane Research said, “The seven-day average real trading volume continued downwards this week.”
“The first day of the year registered as little as $192 million in volume. These levels have not been seen since April 2019. Although this could be related to the holiday period and less activity during weekends, this is not a positive trend for the leading cryptocurrency in the space,” they added.
The problem is worsening, especially as traded volume has been falling fast since crypto analysts warned against weak traded volumes in October 2019.
BTC traded volume rose in early 2020, hitting almost the same level they reached at the beginning of 2019.
This rise came after Facebook unveiled its planned Libra project. This indicates that BTC traded volume is tied to media coverage of crypto.
Switzerland’s President Ueli Maurer said Facebook’s cryptocurrency Libra has failed and should be amended before being submitted for regulatory approval.