2020 is a crucial year for Bitcoin. There have been dazzling highs and lows in the year. However, the current market shows that digital assets may be continuing the best period of the penultimate month of this year. Explain everything . As we said, the value of Bitcoin exceeds $15,000, and it has moved up over a major price range at a time.
However, for this year, this is not an easy task, at this time Bitcoin’s performance is still considered to be underestimated. A year was full of major geopolitical events that lasted for several months. An unexpectedly destructive virus pandemic, rising inflation concerns, and complete economic uncertainty allowed Bitcoin to survive.
In the year when the Dow Jones Industrial Average fell 10% and the S&P 500 index fell to its biggest drop since 1987 (-9.5%), Bitcoin showed a certain degree of “controllable advantage” and later became consistently outstanding. Bitcoin will grow by about 60% in 2020 , while the S&P 500 will only grow by 10%.
Now, here is the place to pay attention. Bitcoin’s volatility is small, but it is still at this level. According to a recent report, Bitcoin is now gaining a risk-adjusted advantage over Nasdaq .
The report states, “Our picture describes the main reason why cryptocurrency is set to continue to perform its main function in most cases: relative volatility. Compared with Nasdaq, Bitcoin’s 60-day risk measurement At the low end of its range, if history can be used as a guide, we can shift our appreciation preference to cryptocurrencies .”
In addition, it is pointed out that 2021 may bring more demand for Bitcoin, and its irrelevance to the stock market will increase.
From the perspective of the chain, Bitcoin’s market value and realized value (MVRV ratio) is at a 15-month high of 2.160. MVRV can be used to compare the valuations of speculators and asset holders. It is currently a new high, which indicates that holders have provided long-term support at the current price and the speculation cycle has begun to decline .
In terms of uncertainty, why won’t 2021 become 2020 again?
The U.S. election is nearing its end, which will eliminate the long-lasting geopolitical influence, and Bitcoin will not be halved again in 2021. It will basically wait until 2024. These two factors and economic uncertainty have had a certain impact on the larger Bitcoin market in 2020.
In 2021, Bitcoin will likely get rid of the influence of any such external events. With the slow resolution of the impact of the new crown virus, the traditional stock market will eventually stabilize.
Therefore, 2021 may allow Bitcoin to rebound on its own, and it is currently pushing its own bullish momentum forward .
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
