Report: Bitcoin trading volumes more than doubled

Over the past week, Bitcoin trading volumes increased by 126%. This is stated in the latest report of the research firm Arcane Research.

According to analysts, during the holidays, trading activity was "at alarmingly low levels."

“Nearly $ 1.5 billion in trading volumes on January 8 indicate a sharp recovery in the market from the disappointing $ 192 million recorded on January 1,” the report said.

Researchers note a rather close correlation of bitcoin and gold against the backdrop of recent events in the Middle East:

A sharp and almost synchronous increase in the quotes of the first cryptocurrency and gold began on January 3 against the backdrop of the US attack on the base in Iraq and the assassination of the Iranian commander Kassem Suleimani.

The prices of both assets peaked after Iran fired several missiles at the US military base in Iraq on January 8. Against the background of Donald Trump's speech and some weakening of geopolitical tension, bitcoin and gold corrected down.

Such dynamics of both assets once again actualizes the debatable issue of Bitcoin as a protective asset, Arcane Research believes.

In general, the degree of correlation of bitcoin with gold reached the levels of 2016. However, BTC still has the closest relationship with other crypto assets, including Ethereum:

Against the backdrop of a revival of market activity, the indicator of bitcoin volatility increased by 3%, interrupting the downward trend that continued since August:

In response to rising spot prices and trading volumes, open interest on the Bakkt regulated futures exchange has grown significantly.

The likelihood that Bitcoin will rise above $ 8000 at the end of January is
39% off.

Among other things, analysts have noted the growth of bitcoin's onchain activity. So, over the past week, the volume of transactions increased by almost 5%, and the total amount of the transferred value - by more than 25%. Miner commissions grew by 43%, and the number of active addresses increased by more than 7%.

Recall, the other day, the trader Crypto Michaël published a forecast according to which the price of bitcoin with a high probability will soon reach $ 9500.