Bitcoin, and cryptocurrencies in general, are as exciting as they are volatile. You only need to look at the frenzy that surrounded Bitcoin in particular during 2017 to see that it is a new market that can be difficult to predict.
This makes the need for a trusted trading platform, such as AvaTrade, all the more important, as well as an understanding of the trends that may influence the value of Bitcoin in 2020.
Looking at the previous year, 2019 saw the value of Bitcoin double over the course of 12 months. It’s also worthwhile noting that the value fell quite a bit in the latter half of the year, which again makes knowledge and understanding of the trends in this market all the more important, especially if you plan to do some cryptocurrency trading in 2020.
So what are the trends you need to be aware of when trading Bitcoin in 2020?
One lesser-known element of Bitcoin for 2020, particularly for those new to the world of cryptocurrencies, is an event which occurs every four years and is referred to as Bitcoin halving.
Happening in May, as the name implies, it is a halving of the number of Bitcoin created every 10 minutes. This means that instead of the usual 12.5 Bitcoin subsidy given to miners, it will rather be 6.25.
If past halvings are anything to go by, this upcoming one could see the price of Bitcoin rise to as much as $50 000 by the year’s end.
As such the around-the-clock monitoring offered by a trading platform like AvaTrade, would certainly help in keeping tabs on the market in the coming months.
Mining digital gold
Bitcoin has often been referred to as digital gold, and for good reason. Outside of the memes, 2019 saw the price of real-world gold and Bitcoin mirror one another in a rather interesting fashion.
At the time it was the result of increased tensions between the United States and Iran. In 2020, tensions are no less high, but this time around it is driven by the current coronavirus disease epidemic and the ongoing tariff wars between the US and China.
This therefore has the potential to continue the rise in price of both physical and digital gold, as the uncertainty often results in the market behaving erratically.
With AvaTrade’s platform capable of monitoring both physical and digital gold, traders can see whether the correlation does indeed gold true during the course of 2020.
As Bitcoin becomes increasingly visible in the financial sector, more traditional institutions are sitting up and taking notice of the cryptocurrency. This has led to the belief that more institutional investors will embrace Bitcoin in 2020.
It’s important to note that this rumour has been bandied about for the past couple of years, but 2020 is shaping up to be a far less volatile year in terms of the crypto’s value.
Last year for example saw the United States Securities and Exchange Commission (SEC) approve its first Bitcoin fund. There are also murmurings that Bitcoin EFT could become a reality this year, and if that happens, it could result in significant growth for the crypto.
Time to start trading
Either way Bitcoin is beginning to be taken more seriously, and if you are planning to do more online trading in 2020, a platform like AvaTrade is well worth considering, given its history in Forex and the solid reputation it has garnered since inception.
To find out more about the platform, Bitcoin trading, and the other options it has available to users, visit AvaTrade’s site here.[Image – Photo by André François McKenzie on Unsplash]