The turns of 2020 probably made it a best year for a trader, especially if you were involved in cryptocurrencies. May’s third Bitcoin halving, coupled with the euphoric volatility in the global market, made 2020 a year of profits and opportunities for crypto traders.
By November, it was already clear that Bitcoin (BTC) and other major cryptocurrencies had confirmed their status as a recognized asset class among retail and institutional traders, as they outperformed all other major asset classes in the world. The renewed bull run of Bitcoin deservedly grabbed the headlines in mainstream finance and made the global retail crypto trader the 2020 champion in the investment world.
Related: Has Bitcoin proven to be a reliable store by 2020? Experts answer
Unlike the gains in the general financial markets, Crypto’s bull run did not develop from the enormous stimulus packages unleashed by governments and central banks, which helped the valuation of stocks and bonds. Bitcoin has grown organically thanks to a growing global retail base, forced by the growing attractiveness of the asset as a value store.
Above all, the global accessibility of Crypto means that traders around the world are able to make their voices heard outside the crypto ecosystem. Crypto’s universality has given a growing pool of traders the means to express their market positions and discover new-found market opportunities. It is no coincidence that Bitcoin ended up as the best performing asset class of 2020 – due to the newfound aspirations, entrepreneurship and risk-taking of the global crypto-trader.
The 24/7 nature of crypto plays into the hands of traders
The evolving 24/7 nature of the crypto market has enabled traders from all over the world, at any time, to capitalize on the increase in market volatility during 2020. In this way, the year’s energetic markets have a unique created background to play the markets, assisted by the increasing refinement of new trading products and services. In this evolving market landscape, global crypto traders are once again getting the news in the mainstream investment circles.
With Bitcoin’s market capitalization of more than $ 350 billion in November, crypto captured volatility better than many people expected. As a result, crypto appears to be an extremely effective asset for global retailers to successfully navigate the economic and political uncertainties of 2020 – a trend that should continue until 2021.
US presidential election personifies Bitcoin run of 2020
This year’s global volatility arose largely from the macroeconomic and political decisions that took place in the wake of the COVID-19 pandemic. Perhaps the volatility in 2020 led to the US presidential election. The election not only caused markets but also an increase in option contracts linked to the US election.
Crypto played a key role in this development, with decentralized and crypto exchanges offering an abundance of forecast-based futures markets linked to the election. The increase in public interest in Bitcoin futures following the nomination of President Joe Biden reflects the growing appeal of crypto as a tradable asset class. Crypto options can further leverage demand by leveraging the attractiveness and convenience of forecasting markets, with simple, engaging and intuitive products that reflect the market’s instincts and desires of a fast-growing user base. The composition of the crypto market 24/7/365 makes this all the more possible.
Bitcoin’s ability to withstand major macro events, such as US presidential elections, Brexit and of course COVID-19, is proof of its status as a more mature asset class. As John Authers recently noted in an opinion piece in Bloomberg:
“For now, Bitcoin is showing some signs of growing maturity as an asset class – and it has now lasted much longer than the average tulip.”
It is fair to say that cryptocurrencies have lost many of their negative associations by being referred to as ‘rage’ or more commonly known by Warren Buffet as ‘rat poison in the square’. Larger players in the industry are buying Bitcoin and other cryptocurrencies because it is an alternative value store and is gaining recognition as the most complex but desirable currency that has ever existed.
As 2020 came to an end and traditional markets seemed much more stable than seen earlier in the year, investors did not necessarily choose between traditional investments and crypto-trading, but rather realized how they could exist.
As we enter 2021 with positivity and hope that the global COVID-19 pandemic will be neutralized, it is safe to say that traders and investors at all levels, from retail to large enterprises, will be keeping a close eye on Bitcoin and other cryptocurrencies. . year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
The views, thoughts and opinions expressed here are the author’s own and do not necessarily reflect the views and opinions of Cointelegraph.
Dan Gunsberg is CEO and co – founder of Hxro. Then crypto started trading in 2015 and quickly recognized a gap in the market for a trading experience. He is co-founder of Hxro in 2018 with the goal of expanding the world of crypto-commerce with gaming products. Now Hxro is leading the gamification of the crypto-trading market. Prior to Hxro, Dan spent more than 20 years on derivatives as a trader and executive.