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A Slow but Steady Start to the Crypto Year

A Slow but Steady Start to the Crypto Year

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The crypto 2020 outlook is a very mixed bag, but on the whole you can expect a rather slow start to 2020 with some key milestones along the way to watch out for. If you have been watching the markets, you may well have been watching with the look of despair as currencies that you thought couldn’t drop any further – dropped further.

Bitcoin being a notable scalp of the 2019 Christmas period and Ripple also having a pretty awful time of it. In fact, of the two, Ripple came off much worse.

Crypto 2020 – Starting Low for Most

Aside from stablecoins (which I discuss in further detail on another blogpost) the bulk of cryptocurrencies are starting 2020 on a pretty dismal low. This isn’t unfamiliar territory and those who have traded crypto for a number of years will know that Christmas and New Year tend to be pretty awful times for crypto trading.

The reason for this is that many traders simply cash in before Christmas to pay for the expensive time of the year and then build up pots of cryptocurrency throughout the year. This is a steady way for most amateur traders to build up pots of money for the Christmas period but it often causes tremendous woes for those that are more inclined to trade crypto professionally or full time.

January and February should be quiet months and at the tail end of February you may notice the market recovering and looking healthier.

Stablecoins are the Big Winners

In a marketplace dogged by volatility, investors are being increasingly drawn to more stable cryptocurrencies that behave in a more investor friendly way. Stablecoins like Tether and USDC are likely to pick up a lot of business over the next twelve months and it is also possible that Tether takes Ripple’s third spot by the end of the year.

For those looking for a bit more predictability and safety, stablecoins could offer you a really promising investment so check them out. On the other hand, Ripple and Ethereum have their backs against the wall and both will be looking to make big changes in 2020 to bolster their market capitalisation and win over investors.

Make sure you follow developments from both Ripple and Ethereum as a bit of advanced warning could steer you very pretty by the end of the year.

Bitcoin is Out in the Cold

Unsurprisingly, Bitcoin has its own trial and tribulations that are largely independent of the rest of the market. Aside from the need to actually gain traction as a real currency (more on this in a separate post) it will also undergo a halvening which is generating bit of hype.

And, as if all of this wasn’t enough, it looks like Bitcoin will have a bit of competition by the end of the year for the top spot from Libra (Facebook’s cryptocurrency) which has been hampered by problems of its own. It seems however that despite so much negative publicity, Facebook is still intending to launch Libra in 2020 and given the size of the social media giant’s reach, it could come knocking at Bitcoin’s door sooner than expected.

Crypto 2020 Market is Exciting

Unlike previous years where there wasn’t much on the horizon, 2020 has a whole host of game changing events in the works that could really shake up the cryptocurrency market. And you heard it here first, 2020 could be the year that a major cryptocurrency fails altogether for the first time, purely because of the market pressures.

Stay tuned!

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