2020 may well be “Bitcoin’s year”, if one is to believe Mike Novogratz. The CEO of the crypto merchant bank Galaxy Digital recently said 2020 will be the year the premier crypto shines. Moreover, other crypto industry profiles are also suggesting that crypto volumes are surging.
2020 will be “Bitcoin’s year”
Novogratz’ recent comments came on Twitter. Novogratz notes that Bitcoin will likely stay volatile over the coming few months. However, despite the fact that the wider stock market plunge brought the crypto market down with it, Novogratz still believes 2020 will be “Bitcoin’s year”.
“Bitcoin will continue to be volatile over the next few months but the macro backdrop is why it was created. This will be and needs to be BTC’s year.”
The “macro backdrop” Novogratz refers to is seemingly the ongoing panic gripping financial markets in the COVID-19 coronavirus’ wake. Yesterday, the Federal Reserve said that it would be implementing quantitative easing measures without an upper limit.
Crypto volumes are surging
This “quantitative easing infinity” represents exactly the sort of central bank interference – i.e. money printing – cryptocurrencies could prevent. What’s more, the crypto markets are now once again in the green, after last week’s tumultuous price drops.
Additionally, the crypto market is seeing surging volumes. According to Brian Norton, the CEO of MyEtherWallet (MEW), the low price of Ethereum is triggering sales to skyrocket:
“There are more people buying ETH on MEW now than ever before. We have never seen these numbers, not even during the big crash in Winter 2018. Any dip in prices will cause a shift in transactions, but this one is record-breaking in terms of taking one action: Buy cheap ETH.”
“Unlike traditional companies, Bitcoin can and will survive without bailouts”
This is likely due both to the dip in market prices, as well as how rocky traditional financial markets are. Moreover, there are signs suggesting that Bitcoin – and the crypto market – are now beginning to act as counter-cyclical assets.
Put simply, this means that crypto prices appreciate as the stock market continues to fall. According to Catherine Coley, the CEO of Binance.US, this is already happening:
“Bitcoin’s recent jump while the rest of the market tumbles proves that unlike traditional companies, Bitcoin can and will survive without bailouts. Bitcoin has always been built on the idea of a need to send and receive value in a safe and secure way, and that’s not going anywhere.”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.