2020 will be a great year given everything that has happened so far. Most people would take this as a joke, but maybe not for the crypto space.
The world seems to burn wherever you look. Almost every month this year brings with it new unforeseen challenges for which the world is unprepared. With all the uncertainty, it may be time for the cryptocurrency to start becoming the great safe asset class we all want it to be.
In other words, it should be offered as a major diversified asset class before all other traditional stocks. Let’s discuss cryptocurrencies, the price of Bitcoin and what else they can fix in 2020.
Crypto market 2020
Looking at the market for a long time, we are in a pretty good position.
Historically, the earlier months of the year have been extremely volatile and unpredictable. Although lately it seems, these months have only served to strengthen the crypto community back to its former glory. Most altcoins are slowly overcoming the long crypto winter, and Bitcoin seems to be entering the spring as well.
All of this is preparing to look like a beautiful spring for digital assets across the market. In addition, there are many huge updates that want to see the light of day for the first time in years for most of the best assets. Not to mention the exceptional interest of the world market in stable currencies from the Bank of China and most of the largest countries in the world.
At this point, it’s hard to tell if the cryptocurrencies are fake or just some phase. Crypto has proven its resilience this ‘winter’ that the market has gone through to cleanse itself of fake ICOs, confusing investors and sentiment. There is a clear change in market sentiment, as there is a lack of FUD (fear and doubt) in the markets and new investors are entering the market.
Halving of Bitcoin
Although we could ignore the biggest indicator of change, it would not be reasonable. Bitcoin halving took place once again and the network shook. While some people see the strength of the network as an indicator of Bitcoin price movements, this is not really as correlated as expected. This is simply due to the economy behind Bitcoin’s reward system and the extreme harsh reality of the halving effect.
A better indicator of Bitcoin price movements would be statistics such as the Grayscale fund, which invests more money per week in Bitcoin than is currently produced by miners in total. Statistics like these will certainly change the situation over time, as the OTC market dries slowly, leading to a slowdown in the supply and demand pattern.
These are simple indicators, but these indicators are consistent. A limited number of bitcoins are produced, and if there are people who buy more than is available on the over-the-counter market, so will the public market.
It takes time for the price to reflect these movements.
The purpose of crypto
While crypto really aims to offer a completely decentralized and removed from the traditional market asset class, it will also serve as a new type of commodity. It will slowly allow investors to hedge against the traditionally heavily manipulated markets of banks and funds at a new stage of investment.
A person who has no time limit, a person to print more than him, or a governing body. This is a new era and offers new models for derivatives, funds, indices and investment. Normal options for foreign and domestic investment are no longer the only things on the market, but there is a new option that most serious investors are probably considering now.
The growing uncertainty about where the market is heading, why not look at cryptocurrencies? The Fed is printing too much money, world trade is slowing down a lot, and banks are competing. Investors will slowly see cryptocurrency as a viable alternative in case the worst happens.
Not to mention that cryptocurrency is the safest place to invest your money. However, the idea is to hedge your bet. People with a lot of money know, that’s all that matters. Expand your wealth as much as possible to prevent every single point of great loss. Cryptocurrency is, after all, just another alley for the spread of wealth.
Next bull market
There is a lot of talk about this topic. Therefore, however, most likely this bullish market will take place in 2021:
-The market still does not have enough real products.
-Bitcoin has only recently undergone its halving. It must take time before it has an effect.
” Ethereum hasn’t released the big update yet.”
-Several projects are still preparing to release huge updates to their core network.
-The next wave of investors is not here yet.
-In some vital areas of the world, regulation is still slow
-The bull market may be slowed by global disasters such as COVID-19
These are just a few reasons, but it will be another year before retail investors ‘flood’ the market. There is still too much focus on disasters, racial inequality and lack of development. Once all this is over, we will be able to see the blue sky in the crypto world again. These are just assumptions after all.
The flip side of the coin is that with fewer people focused on price, movement can happen more suddenly and unexpectedly. It is best to keep your assets as liquid as possible and monitor the market every day to capture the best prices and ensure your profits.