Bitcoin Jumps to $8,000 on Strong Volume in Spot and Futures Market
- Bitcoin price soars just like gold that hit a level not since 2013
- IOTA is leading with 7.69% gains while XRP which has flying since yesterday went red
In a sudden move, the Bitcoin price jumped to surpass $8,000 on Bitstamp. From the low of $6,850 on January 3rd, we have surged nearly 17%.
At the time of writing, BTC/USD has been trading at $7,865 with 24 hours gains of 4.28% as per Coincodex.
Unlike previous spikes, this move was backed by a huge volume as well. More than $1 million worth of BTC changes hands on the top ten exchanges with real volume, as per Messari. For a long time now, the trading volume has been really low, staying around $200 million.
The volume has been constantly falling, down 90% from June 2019. On January 1st, it was as little as $192 million which was last seen in April 2019.
But today, we are seeing much growth. Bitcoin futures volume is also surging with BitMEX derivatives volume doubling in the last 24 hours. Volume on BitMEX went from almost $1.5 billion to $3.4 billion.
Though Bakkt has not hit a new all-time high this time, the volume has grown since the last ATH that led to a decline in volume.
Monday's Bakkt Bitcoin Monthly Futures:
📉 Traded contracts: 3347 ($26.49 million, -14%)
🚀 All time high: 6601 (12/18/2019)
💰 Open interest: $4.78 million (+5%)
— Bakkt Volume Bot (@BakktBot) January 7, 2020
Today so far, 1,111 BTC contracts worth $8,79 million have been already traded with the day progressed only 17%.
However, gold proponent Peter Schiff isn’t feeling this 4% rally with gold up the same percentage. He argues if this is BTC’s best rally, it won’t be able to hit $50k let alone $1 million.
For those Bitcoin bugs excited about Bitcoin's 4% rally in 2020, think about this. #Gold is also up by about the same percentage this year, only with significantly less downside risk. If this is the best rally #Bitcoin can muster, how will it ever hit 50K, let alone 1 million?
— Peter Schiff (@PeterSchiff) January 6, 2020
Gold is hitting $1,564.66 per ounce, a level was last seen in 2013 as US-Iran tension intensifies. Over the past month, gold already gained $100 per ounce on a weak US dollar and rising inflation expectations. Now, the safe haven sentiment surrounding gold is further boosting its price.
“The escalation of the situation in the Middle East has caused investors to seek refuge in gold, a traditional safe haven in times of crisis,” Commerzbank analysts said in a report Monday. “Consequently, the gold price has gained significantly since the start of the year (…) which puts it at its highest level since April 2013.”
— YUAN TALKS (@YuanTalks) January 7, 2020
While the digital gold is enjoying a nice surge, XRP emerged as the winner. The digital asset has gone back above $0.2155 which has been seen by analysts as just the starting. But it has once again turned red with 1.23% losses in the past 24 hours, as per Coincodex.
IOTA (IOT) with 7.69% is today’s biggest gainer among the top cryptocurrencies while Monero is also up by 3.40%.