Top Trends of Bitcoin Trading in 2020
2019 has been an interesting year in the crypto market, with Bitcoin potentially building the foundation for its next bull run, and many changes taking place within the overall landscape of the cryptocurrency industry in terms of assets, trends, and even regulation.
The market is maturing, investors are becoming savvier, and crypto companies have begun adapting to the new market environment by offering unique products and services that cater to new, growing trends.
With the close of 2019 inching closer and closer, and the holiday season almost here, its time to begin to look forward into the new year, and analyze any emerging trends across the cryptocurrency market that may have a major impact in the future of the space.
Institutional Investors Enter The Market
Bitcoin has only just turned 11 years old, and while a decade is indeed a long time, it and other cryptocurrencies are among the youngest financial asset classes in the market.
The value and price action of the young digital asset class thus far has been mostly driven by retail investors, and early adopters who either became attracted to the asset class due to the promise of the underlying technologies behind each asset, or by the promise of untold riches generated from buying an asset before it takes off.
But the tides are turning, and retail traders burned by the bubble pop in late 2017, have almost completely left the market, and taking their place is a surge in institutional investors.
For some time, institutional investors had few platforms to trade on, and even less in the way of trusted custodial services in which to hold their enormous wealth in crypto assets. However, this past September, New York Stock Exchange parent company Intercontinental Exchange, launched a new Bitcoin trading desk and holdings service called Bakkt, aimed at luring in new institutional investors.
The platform launched to much disappointment, however, trading volume has more than doubled in recent weeks, suggesting that institutions are finally getting into the fold and beginning to trade the first-ever cryptocurrency on Bakkt.
The addition of these high wealth investors buying up an already scarce digital asset is believed to drive the price of Bitcoin up significantly. And with the assets halving coming up in May, there will be even less Bitcoin being released into the market, further offsetting the delicate balance of supply and demand in favor of increasing prices.
Combining Crypto With Traditional Assets
Retail investors that stuck with crypto, through the emerging digital asset class have learned more about investing and trading, and have since matured greatly. While they typically got their start in crypto assets due to the ease of access and lack of meeting certain investor requirements, they have since begun taking interest in other, traditional financial markets and assets.
Bitcoin traders have become particularly interested in building portfolios across other, uncorrelated assets, in order to balance out their risk exposure and open up additional aven ...