Bitcoin’s Ten Years Young and Is Already Taking Conventional Investments to School in 2019
2019 has been the year of crypto assets where it has outperformed most of the traditional assets such as oil, gold, and popular stocks. While 2018 was the year of the bearish trends, 2019 is highly bullish. The crypto market was expected to spring back and rise in value with an impending bull run on the cards. However, analysts were predicting the rise of the crypto market towards the end of 2019, but bulls arrived as early as April which has doubled the market cap of cryptocurrencies by double since the start of the year.
The total market cap of crypto space stands at a quarter of a trillion dollars and the daily trading volumes of the digital assets are touching as high as $80 billion. In comparison, traditional assets like oil are up by 29% in 2019, which is followed by popular stocks such as Nasdaq up by 15%, S&P up by 13%, Dow Jones up by 10%, and the Nikkei is up by 6%. While Gold has seen a mere surge of 0.46%.
While it is unfair to compare the traditional assets with the digital ones since cryptocurrencies are known to be volatile, where both the dips and highs are equally massive. During the recent surge in the crypto space starting in April, some assets such as Bitcoin Cash made 50% gains on a single day, which tells a lot about the volatility of these assets.
The 2017 rise of Bitcoin was surely phenomenal which took its prices from $750 to near $20,000 in December. Similarly, the downfall throughout 2018 saw Bitcoin, as well as the crypto space, lose more than 80% of their overall market cap.
The Changing Landscape of Digital Assets
2018 might have been a forgettable year for the crypto investors, however, the bearish trends of 2018 cut down the high-volatility of the crypto space, paving the way for traditional and institutional investors to make a foray into the digital asset arena. In 2019, the cryptocurrency market is stronger than ever before as more people have shown interest and are dumping traditional assets for the digital ones.
If we look at the gains made by some of the crypto assets it comes out to be more than most of the traditional assets combined. The biggest gainer in the digital arena is Binance Coin (BNB), which has surpassed its all-time-high record twice in the last month itself. BNB started the year at $6.19 and currently trading at $33.68. Litecoin has added around 265.85% to its value from the start of the year. Bitcoin Cash (BCH) the forked sibling of Bitcoin has also risen 186% taking its value from $150 at the start of the year to the current price of around $432.
Cryptocurrency Market Is Thriving and Prices May Go Further Up
2019 has been predicted to be the year of bulls, after bears dominated throughout 2018. The overall market cap of the cryptocurrency market stood at $125 billion at the start of the year, and currently, it is at $273 billion, seeing an increase of 118%. The daily trading volumes have risen a massive 500% from the start of the year as well. On January 1st the crypto space traded $12.6 billion worth of crypto assets and that trading volume jumped to 83 billion by 28th of May seeing a massive surge of 558%.
Bitcoin, the pioneer of the cryptocurrency space was only the sixth largest gainer with a 132% rise in value from the start of the year. Bitcoin started the year at $3,746 and currently trading at around $8638 after seeing a minor price correction earlier today.
The cryptocurrency space has not just made tremendous gains in terms of the value, but also as the preferred investment option over traditional assets. Various trust management and hedging firms have confirmed that new and upcoming traders want to swap their gold reserves for Bitcoin.
The current price movement in the crypto space is speculated to rise further throughout 2019, as the price charts, and key metrics suggest that Bitcoin and other altcoins are mimicking the patterns of 2017 rise. While there have been several speculations about the crypto market seeing another bottom before a full-fledged bull run takes charge, there are many who believe that the market has already passed the bottom, and prices would only go further up.
The best part about the current surge is that most of the naysayers and long term critiques have come around to join on the crypto bandwagon, having realized that the crypto space is thriving and here to stay.