The twists and turns of 2020 have arguably made it the best year ever on record for being a trader, especially if you’ve been involved in cryptocurrencies. Bitcoin’s third reduction in May, along with the euphoric market volatility that swept global markets, made 2020 a year of gains and opportunities for crypto traders.
In November, it was already clear that Bitcoin (BTC) and other major cryptocurrencies had cemented its status as a recognized asset class among retail and institutional traders, having overshadowed all other major asset classes in the world. Bitcoin’s renewed bullish run deservedly made headlines across the financial sector and made the global retail cryptographer the 2020 champion in the investment world.
Related: Did Bitcoin prove to be a reliable store of value in 2020? Experts respond
Contrary to gains in conventional financial markets, the crypto bullish race has not evolved out of the huge stimulus packages released by governments and central banks that helped boost stock and bond valuations. Bitcoin has grown organically thanks to a growing global retail base, driven by the asset’s growing attraction as a store of value.
Above all, the global accessibility of cryptography meant that retailers around the world could have their voices heard beyond the crypto ecosystem. Crypto’s universality has provided a growing group of traders with the means to express their market positions and discover new market opportunities. It was no accident that Bitcoin ended up as the best performing asset class in 2020 – largely due to the new aspirations, entrepreneurship and risk-taking of the global retail crypto trader.
The nature of cryptography 24 hours a day, 7 days a week, plays in the hands of merchants
The evolving nature 24 hours a day, 7 days a week of the crypto market has allowed traders anywhere in the world, at any time, to capitalize on the increased market volatility throughout 2020. In this way, the energy markets of the year created a unique scenario to play the markets, aided by the growing sophistication of new commercial products and services. In this evolving market scenario, global crypto retailers have begun to capture headlines in conventional investment circles once again.
With Bitcoin’s market capitalization exceeding $ 350 billion in November, cryptography captured the volatility better than many had predicted. As a result, cryptography has proven to be an extremely efficient asset for global retail merchants to successfully navigate the economic and political uncertainties of 2020 – a trend that is expected to continue into 2021.
The U.S. presidential election embodies the Bitcoin bullish run in 2020
This year’s global market volatility resulted largely from the macroeconomic and political decisions that developed in the wake of the COVID-19 pandemic. Perhaps the volatility of the 2020 market culminated in the US presidential election. The election not only caused a stir in the markets, but also produced an increase in option contracts tied to the US election.
Cryptography played a central role in this development, with decentralized and cryptographic exchanges that offer a multitude of future markets based on predictions linked to the election. The rise in open contracts in Bitcoin futures following the appointment of President-elect Joe Biden reflected the growing appeal of cryptography as a class of tradable assets. Crypto options can capitalize on this demand even more, taking advantage of the appeal and ease of forecasting markets, with simple, engaging and intuitive products that reflect the market instincts and desires of a rapidly growing user base. The 24/7/365 composition of the crypto market makes this even more possible.
Bitcoin’s ability to withstand major macro events, like consecutive U.S. presidential elections, Brexit and, of course, COVID-19 are proof of its status as a more mature asset class. As John Authers recently pointed out in an opinion piece on Bloomberg:
“For now, Bitcoin is showing some signs of growing maturity as an asset class – and it has lasted much longer now than the average tulip.”
It is fair to say that cryptocurrencies have lost much of their negative associations to being called “a craze” or, more famously by Warren Buffet, as “rat poison squared”. Larger players in the industry are buying Bitcoin and other cryptocurrencies because they are a store of alternative value and are gaining recognition as the most complex, yet desirable, currency that has ever existed.
As 2020 approached its end and traditional markets seemed much more stable than witnessed earlier in the year, investors were not necessarily choosing between traditional investment and crypto commerce, but rather recognizing how they could coexist.
As we enter 2021 positively and we expect the global COVID-19 pandemic to be neutralized, it is safe to say that traders and investors at all levels, from retail to large corporations, will be keeping an 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 must conduct their own research when making a decision.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Dan Gunsberg is CEO and co-founder of Hxro. Dan started trading cryptography in 2015 and quickly recognized a gap in the market for a trading experience. He co-founded Hxro in 2018 with the goal of expanding the world of crypto commerce with game products. Now, Hxro leads the gamification of the crypto trading market. Prior to Hxro, Dan spent more than 20 years trading derivatives as a trader and executive.