Bitcoin had been very interesting to many crypto traders in 2019. The price movements are being described as a coaster. That is because the price levels attained nu the BTCUSD pair were resistance areas. These areas were being tested at least four times. However, the tests did not succeed in breaking the price range to the upside. As a result, the price dropped to as low as $6800.
The global economy during the first quarter of 2020 was in total shock. Oil, bonds, stocks, and gold are asset classes that came under siege. Not only that, but the crypto markets also end up in panic mode on March 12. about $93 billion was wiped out in just a matter of 24 hours. This resulted to 48% plunge in the price of Bitcoin.’
Ethereum, Litecoin, and NEO are some of the cryptocurrencies on the market. However, Bitcoin remains the most popular and largest in terms of market cap. And since crypto is a form of digital currency, no need for you to use the central banking system.
Cryptocurrencies sit on a platform known as a blockchain. In exchange for Bitcoin rewards, you need to mine Bitcoins. Since several individuals are verifying any transaction, anyone is free to mine Bitcoin. So, more and more people are investing in Bitcoins with the help of different trading platforms like the app bitcoin lifestyle.
However, many crypto enthusiasts are still curious to whether Bitcoin is a good investment in 2020. In this post, you will learn the things you can expect from Bitcoin this year.
According to crypto experts, the current global liquidity crisis may destroy several asset classes. Then, Bitcoin and other cryptos will prevail in the short-term.
From a year ago, Bitcoin is still up about 33%, making it very resilient. Why not? This crypto continuously gains favor as an undiluted store of value. In case more investment funds are granted with investment to ETS and other financial vehicles, there’s a big chance that Bitcoin will have a massive run. Besides, floodgates may also open. That is possible if the regulatory environment will become clearer for endowments, insurance funds, and pension funds.
Bolstering of Bitcoin Prices
The closed economies can bolster the prices of Bitcoin. That is because the global economy is in turmoil.
Many economists believe that the prices of investment products are driven by the demand of investors for future returns. They also believe that digital currencies come with a number of constituent markets.
For example, Ripple is driven by investors who believe that cryptos can have a future role in either international bank transfers or interbank lending markets. As for Bitcoin, the demand tends to be bolstered when consumers in closed economies such as Venezuela, Iran, and China purchase Bitcoin with a purpose of protecting their wealth. That is especially if these people feel that the domestic currency will lose its value.
Extreme Bitcoin Price Volatility
While the recent downturn in prices of Bitcoin, as well as the cryptocurrencies as a whole, surprised the world, a lot of crypto experts still believe that the global economy has not yet seen anything like the current event since the World War II.
Many experts expect severe volatility in the cryptocurrencies market. On the other hand, they remain positive that flourishing will be seen once again. In fact, 80% rebound happened in March 2020, from $3,800 to $6,206.
At any time, the movement of the Bitcoin prices may change. The good thing is that despite the massive global economic turmoil, this crypto still manages to rise. So, it is not foolish to say that it is good to invest to Bitcoin this year.