Retail traders, not hotshots like MicroStrategy, created Bitcoin in 2020

The twists and turns of 2020 made it arguably the best year ever to be a trader, especially if you were involved in cryptocurrencies. The third Bitcoin halving in May, coupled with euphoric market volatility sweeping through global markets, made 2020 a year of gains and opportunity for crypto traders.

By November, it was already clear that Bitcoin (BTC) and other major cryptocurrencies had consolidated their status as a recognized asset class among retail and institutional traders, having surpassed all other major asset classes in the world. world. Bitcoin’s new bull run has made headlines in mainstream finance and made the global cryptocurrency trader the 2020 champion in the investment world.

Related: Has Bitcoin proven to be a reliable store of value in 2020? Expert response

Unlike traditional financial market gains, the crypto bull run has not evolved from the massive stimulus packages launched by governments and central banks that have helped prop up valuations of stocks and bonds. Bitcoin has grown organically thanks to a growing global retail base, forced by the asset’s growing appeal as a store of value.

Above all, the global accessibility of crypto has enabled retail traders around the world to make their voices heard beyond the crypto ecosystem. The universality of Crypto has provided a growing pool of traders with the means to express their positions in the market and to discover new market opportunities. So it is no coincidence that Bitcoin has emerged as the best performing asset class of 2020 – in large part, due to new aspirations, entrepreneurship and risk taking from the global trader of crypto.

The 24/7 nature of crypto plays into the hands of traders

The evolving nature of the 24/7 crypto market has enabled traders from all over the world, at any time, to capitalize on the increase in market volatility throughout 2020. In this way, The energy markets of the year have created a unique backdrop to play in the markets, aided by the increasing sophistication of new business products and services. In this ever-changing market landscape, global crypto retail traders have returned to making headlines in mainstream investment circles.

With Bitcoin’s market cap exceeding more than $ 350 billion in November, crypto has captured volatility better than many expected. As a result, crypto has proven to be a hugely effective asset for global retail traders to navigate through the economic and political uncertainties of 2020 – a trend that is expected to continue through 2021.

US presidential election personifies Bitcoin’s bull run in 2020

Much of the volatility in the global market this year is due to macroeconomic and political decisions that have unfolded in the wake of the COVID-19 pandemic. Market volatility in 2020 may have peaked with the US presidential election. The election not only caused a stir in the markets, but also caused a sharp increase in options contracts linked to the US elections.

Crypto has played a central role in this development, with decentralized and crypto exchanges offering a plethora of election-related prediction-based futures markets. The surge in open interest in Bitcoin futures following the appointment of President-elect Joe Biden reflected the growing appeal of crypto as a tradable asset class. Crypto options can further capitalize on this demand by taking advantage of the attractiveness and ease of prediction markets, with simple, attractive, and intuitive products that reflect the market instincts and desires of a user base. rapidly growing. The 24/7/365 makeup of the crypto market makes this all the more possible.

Bitcoin’s ability to withstand major macroeconomic events, such as the back-to-back US presidential election, Brexit, and of course COVID-19 are proof of its status as a more mature asset class. As John Authers recently pointed out in an opinion piece in Bloomberg:

“At the moment, Bitcoin is showing signs of increasing maturity as an asset class – and it has outlived the average tulip much longer.”

It’s fair to say that cryptocurrencies have lost much of their negative associations from being referred to as “craze” or more famously by Warren Buffet as “squared rat poison”. The biggest players in the industry buy Bitcoin and other cryptocurrencies because they are an alternative store of value and are recognized as the most complex but desirable currency that has ever existed.

As 2020 drew to a close and traditional markets seemed much more stable than seen earlier in the year, investors weren’t necessarily choosing between traditional investing and crypto trading, but instead recognized how they were. could coexist.

As we enter 2021 with positivity and hope that the global COVID-19 pandemic will be neutralized, it is safe to say that traders and investors at all levels, from retail to large corporations, will be keeping a close eye. on Bitcoin and other crypto-currencies. year.

This article does not contain any investment advice or recommendations. Every investment and trading move comes with risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed herein are the sole ones of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.