Bitcoin and Gold Buying Patterns
Bitcoin is closing out 2019 with an impressive 100% advance, which is well ahead of the 30% gain in the S&P500 stocks.
Although we saw a worrying pullback in cryptocurrencies in the second half of the year, BTC has seen buyers emerge at the $7,000 level in the last two months and this gives hope that the base has been set for further gains.
BTC has often tracked gold as a safe haven play when financial markets are stressed. We have seen similar buying of gold into the year-end. This may hint that a market event is approaching where safe investing comes back into play after another year of bullish stock markets.
Litecoin Underperformed BTC, but That Can Change Again
Litecoin’s year-end performance was less impressive than BTC, yet the coin still closes out the year with a 45% annual return. This was a disappointing end to the second half after LTC led the market in the January rally, with the coin exploding from $30 to a high of $145 in June.
The advance in LTC may have been driven by fresh investment coming into the market and seeking some value outside of BTC. This changed in H2 as institutional investors saw BTC as the pacemaker in the crypto market and its dominance of the market doubled from 34% to 68%. This dynamic can change again but it will likely need another bout of fresh investment from further market adoption, or from a key development by the Litecoin foundation.
Bitcoin is still the cryptocurrency market leader with a 100% gain in 2019. Litecoin finished up with a still-impressive 45% advance, however, that was a strong pullback from its gains in the first half of the year.
The outlook for the crypto market is still a positive one for the year ahead. The price moves in crypto have been driven by traders and professional investors and we have yet to see any move closer to mass adoption, but this would only happen with a game-changing app or financial panic.
On the app side, Facebook’s Libra has seen its launch stalled by regulators, however, we are still looking at a potential release from Starbucks in mid-2020, which could see crypto payments rolled out across its 31,000 stores worldwide.
About the Author: Victoria is an expert marketer and has extensive experience and knowledge of the crypto and blockchain spheres. She also a new addition to our new Marketing team.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.