The particular twists and turns associated with 2020 made it arguably the best year on record to be a trader, especially if you were involved with cryptocurrencies. May’s third Bitcoin halving , coupled with the euphoric marketplace volatility that swept global markets, made 2020 per year of gains and opportunities for crypto traders.
By November, it had been already clear Bitcoin ( BTC ) and other major cryptocurrencies acquired cemented their status as a recognized asset class among retail and institutional traders alike, having outshined all other major asset classes in the world. Bitcoin’s renewed bull work deservedly grabbed the headlines across mainstream finance and made the global retail crypto trader the champion associated with 2020 in the investment entire world.
Unlike the gains within mainstream financial markets, crypto’s bull run did not evolve from the massive stimulus packages unleashed by governments and central banks that helped prop up equity and connection valuations. Bitcoin increased naturally thanks to a growing global store base, compelled by the asset’s growing allure as a shop of value.
Above all, crypto’s global ease of access meant retail traders across the world were able to have their voices heard beyond the crypto ecosystem. Crypto’s universality provided an increasing pool of traders with the means to express their market positions and uncover newly found market opportunities. It is simply no coincidence then that Bitcoin finished as the best executing asset class of 2020 — in no small part, due to the newfound goals, entrepreneurialism and risk-taking of the global retail crypto trader.
The day to day nature of crypto performs into traders’ hands
The evolving daily nature of the crypto market allowed traders from all over the world, at any time, to capitalize in the increase in market volatility throughout 2020. In this way, the year’s energetic markets created a distinctive backdrop to play the markets, helped by the growing sophistication of new trading products and services. In this evolving market landscape, global crypto retail traders began to capture the headlines in mainstream investment circles once again.
With Bitcoin’s market capitalization surpassing over $350 billion in November, crypto captured volatility better than several had anticipated. As a result, crypto proved to be a hugely effective asset for global retail traders to successfully navigate the economic and political uncertainties of 2020 — a trend that should continue into 2021.
U. S. presidential political election personifies 2020’s Bitcoin half truths run
This particular year’s global market volatility arose largely from the macroeconomic and political decisions that will unfolded in the wake from the COVID-19 pandemic. Perhaps 2020’s market volatility culminated with all the U. S. presidential election. The election caused not only a stir in markets but additionally produced a surge in options agreements tied to the U. Ring. election .
Crypto played a primary role in this development, with decentralized and crypto deals offering a plethora of prediction-based futures markets tied to the political election. The surge in open up interest in Bitcoin futures using President-elect Joe Biden’s nomination reflected the widening benefit of crypto as a tradable resource class. Crypto options can capitalize on that need even further by leveraging the appeal and ease of prediction markets, with simple, engaging and intuitive products that reflect the market’s instincts and desires of a growing user base. The 24/7/365 makeup of the crypto marketplace makes this all the more possible.
Bitcoin’s ability to withstand major macro events, such as back-to-back U. S. usa president elections, Brexit and, naturally , COVID-19 are proof of the status quo as a more mature asset course. As John Authers lately pointed out in an opinion piece in Bloomberg:
“For the time being Bitcoin is without a doubt showing some signs of growing maturity as an asset class — and it has endured much longer now than the typical tulip. ”
It is fair to say that cryptocurrencies have lost much of their own negative associations of being known as “a craze” or more notoriously by Warren Buffet as “ rat poison squared . ” Larger industry players are buying Bitcoin and other cryptocurrencies because they are an alternative solution store of value plus gaining recognition as the many complex yet desirable currency to ever exist.
As 2020 drew to a close and traditional markets were looking much more stable than witnessed previously in the year, investors weren’t necessarily choosing between traditional investing and crypto investing, but rather recognizing how they can co-exist.
As we have entered 2021 with positivity and hope how the global COVID-19 pandemic is going to be neutralized, it’s safe to say that traders and traders at all levels, from store to large corporates, will be keeping a close eye in Bitcoin and other cryptocurrencies this year.
This short article does not contain investment help or recommendations. Every investment decision and trading move requires risk, and readers should conduct their own research when making a decision.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reveal or represent the sights and opinions of Cointelegraph.
Dan Gunsberg is CEO plus co-founder of Hxro. Dan began trading crypto in 2015 and quickly recognized a gap in the market for the trading experience. He co-founded Hxro in 2018 with all the aim of expanding the world of crypto trading with gaming products. Now, Hxro leads in the gamification of the crypto trading market. Before Hxro, Serta spent over 20 years in derivatives trading as an investor and executive.