The winter of 2017 will go down in history as being one of the most awe-inspiring and surprising bull markets the world has ever seen, with Bitcoin surging to $20,000 while a number of altcoins printed returns of 3,000% and more.
Onlookers on the sidelines watched in disbelief as colleagues and friends became overnight millionaires on the back of Bitcoin’s success.
But the euphoria and optimism during December 2017 was extremely short-lived as Bitcoin crashed back down to $5,900 in January before entering a gruelling two-year bear market.
Close but no cigar in 2019
Last year had all the signs of a potential bull market. All volatility and volume had dried up with a wrath of weak hands selling their crypto.
There was also of course the announcement of Facebook’s bespoke cryptocurrency dubbed Libra, which reinforced how blockchain technology is on the brink of mainstream adoption.
Bitcoin responded ferociously to the news as it rallied from $3,150 to $14,000 with in the first half of 2019, with some suggesting that a new all-time high being breached was only a matter of time.
But, as with many great things, the rally soon faded with Bitcoin proceeding to make a number of lower highs before sliding all the way down to $4,600.
Will 2020 be any different?
The start of 2020 has been fairly woeful for all seven billion people living on earth with a deadly virus spreading seemingly everywhere at an alarming rate.
This has, understandably, caused a downturn in capital markets with Bitcoin plunging dramatically in unison with the stock market.
But as the fears of Coronavirus begins to hopefully subside, the bounce in markets could be more staggering than before.
For an asset like Bitcoin to show resilience in a period of chaos and uncertainty will give it credit for the rest of its lifetime, potentially even turning those who once heaped scrutiny on the world’s largest cryptocurrency.
If the spread of Coronavirus begins to slow down this summer at the same time as the Bitcoin halving, it could well lead into a bull market for the rest of 2020 and the start of 2021.
As with every previous Bitcoin bull market, price targets are futile as it often exceeds even top analysts’ calls and predictions.
Regardless of anyone’s investment strategy, diversifying a portfolio to include an asset class as unique as Bitcoin and cryptocurrencies would be far from foolish, especially in light of the upcoming halving.
To read more about the Bitcoin halving, click here.
Disclaimer: This is not financial advice.