The growth story of cryptocurrency has been following a roller coaster ride with many ups and downs intermingled in patterns which are difficult to understand even by market experts. In December 2017, the largest cryptocurrency by market capitalization, Bitcoin was trading at around $20,000 and emerged as one of the hot favorites of the investors. However, the following year 2018 proved to be a disaster for the crypto market with all the digital coins came crashing down and lost much of their high initial values. Bitcoin also suffered and in fact, it was among the worst affected digital currencies with its value being down to around $3,300 from an all-time high of $20,000 in 2018. That said, the current calendar year 2019 is proving quite fruitful for the crypto industry as most of the digital assets are now in green.
Top Performing Assets
A close analysis of major assets in terms of their return for the year 2019, reveals that Bitcoin has returned investors the most with its value registering a fillip of 67% on at press time. This fact might surprise many, but still, it is true that Bitcoin has emerged the most credible assets for the year and its returning potential is attracting both retail and institutional investors. Runner-up in the list of highest returning assets is the oil which has registered a gain of around 39% in 2019. There are a number of factors behind the ascent in the prices of oil and as the crypto industry; fortunes in the oil markets also keep on dwindling constantly. Surprisingly the performance of Gold, which is conventionally considered as a safe option, is not up to the mark as this asset has registered a downward growth of 0.12%.
Crypto and Global Markets
The important point to notice here is the fact that the crypto industry is recovering even amidst the turbulent global economic environment led by the ongoing trade war between China and the US. Both of these global superpowers are at loggerheads and slapping high import duties on each other’s products. Many experts are applauding Bitcoin for not coming under the pressure of global trade war, and this has spread a positive message about the crypto industry around the world. Praising the performance of Bitcoin, Thomas Lee who is the co-founder of Fundstrat tweeted that it is heartening to see that tumultuous global scenario has not affected the fortunes of Bitcoin and it speaks volumes about bright future prospects of the crypto industry. What is even more surprising is the fact that Bitcoin is not ready to cede any space despite all the financial markets globally has come under pressure for one or another reason.
In terms of the overall scenario, the crypto and blockchain industry seems to be on strong footings with fundamentals remaining strong to support its future growth. One also needs to acknowledge the contribution of legislative frameworks and regulation in making the customers feel safe in transacting in digital coins. The various government and regulatory agencies have played a very positive role in this regard, and overall, it can be safely assumed that we are heading towards a strong year of crypto growth.