Bitcoin has made quite remarkable progress in 2020. The price has gone from under $7,000 to stay safely above $9,000 forthwith. Its price isn’t the only thing soaring, According to blockchain data, it hit a daily transaction value of over $3.5 billion yesterday. This is significant because it is the highest volume recorded since the 2017 bull market which saw volume skyrocket to above $5 billion.
Although Bitcoin reached a much higher price in 2019 and peaked around $14,000, the volume did not rise significantly despite the price rise. The recent rise, however, indicates that more people are starting to get their hands on Bitcoin in the new year.
Troubled countries driving an increase in transaction value
The year 2020 has been characterized by several issues in countries including Iran, Venezuela and now China. The price surge in the year has been attributed to some of these issues, for instance, the assassination of Iran’s General and the Coronavirus outbreak in China. The fear of uncertainty among people in these countries may have caused the increasing trade volume which was missing last year despite the price gains.
Just last week, it was reported that the trade volume for the asset is seeing a continued increase on peer to peer Bitcoin trading platform, LocalBitcoins. The sharp increase was discerned coming from troubled countries where there is either political or social instability as their citizens look for ways to secure their finances.
Bitcoin – The Best Safe Haven?
There have been several arguments about which use case Bitcoin is best suited for. One of the arguments most prominent is that Bitcoin is becoming a safe haven for investors, something like digital gold.
It seems this narrative is valid, at least for those living in these troubled countries, and now maybe the best time ever to get on board because Bitcoin halving is coming in May this year and according to analysts, this may lead to significant price gains as halving has historically always led to the price surge.
If the chaos in these countries continues, the Bitcoin trade volume is likely to continue growing as the year progresses. This may also lead to further price increase as it becomes more valuable with more people buying. For now, the price is over $9,100 though it has been stagnant for some time. The next move may be unpredictable but analysts believe it is in a bullish state generally.