As the last months of the year approach, many bitcoin investors are hoping to return to the late-day gatherings of recent years.
Despite the challenges, bitcoin still stands head and shoulders above the rest. This is the best performing tool in 2019.
Bitcoin will rise 114% from January
According to Goldman Sachs in 2019 it was the best performing asset class of the US technology shares, showing a 31% increase. Still, compared to yields in the Bitcoin (Goldman Sachs ignored in the calculations), this is small beer.
Over the same period, gold rose 17%. Meanwhile, the S&A P 500 returned 21%. Those seeking safe haven in U.S. Treasury bonds had to celebrate even less, with a 1.6% yield.
Over the same period, Bitcoin grew by 114%. An investor who supported the bitcoins on 1 January, has had doubled his money, and then some. This is despite the fact that the waves to map every day, trading Bitcoin markets from week to week.
Bitcoin finished Q3 with a respectable $ 8,303. That’s lower than the June highs, when cryptocurrency returned to $ 12,902. On January 1, 2019, it was $ 3,801.
And analysts do not expect this growth to slow down soon. According to Brad Keoun, at CoinDesk, the signs point to a renewed rally at the end of the year. This may go beyond the BTC at its June peak.
“Bitcoin prices more than doubled in 2019, far outpacing the 31 percent return on U.S. technology stocks, which Goldman Sachs considers to be the best-performing asset class to date. Oversized returns may attract large investors ’interest in return-hungry traditional financial markets. Messari data plant executives say bitcoin prices, currently around $ 8,200, could rise to new highs in the remaining months of the year, surpassing the $ 12,902 level reached in June. ”
For too many investors, especially at the institutional level, bitcoin remains an untouchable proposition. At least now.
Institutional investors are starting to warm up Bitcoin
Institutions like Goldman Sachs and JP Morgan have already made their feelings about bitcoin public. Leaders have made high-level criticisms. But as bitcoin and cryptocurrency become more grounded day by day, these views are becoming increasingly outdated and misinformed.
Bitcoin has only existed since 2009. This is a blink of an eye when it comes to financial markets. Especially where regulated investors are involved, they continue to feel risky as a speculative instrument with spotted funds that they do not yet understand.
There are signs that the mood is changing. All institutions with pedigrees have cryptography as an asset class.
Keld van Schreven, director of cryptographic investment firm KR1, said institutional investors are starting to become more and more comfortable investing in bitcoin.
“Bitcoin has been around for quite some time where people know it better. Yes, it fluctuates wildly, but they may know other people who have bitcoin and say to themselves, “Hey, they performed very well this year.” You should always be afraid of being missed. ”
It looks likely that 2020 will welcome more and more institutional investors in bitcoin. For many, including Messari analysts, the role of bitcoin as a digital store of value will be key as the market continues to mature.
This is good news for ordinary investors. Rising institutional demand will continue to increase the price of bitcoin in the long run. With a supply fixed at 21 million BTC, there will come a day in the not-too-distant future when there will be no new bitcoin left for mine, which means it will be difficult to buy bitcoin .
What does this mean for Bitcoin investors and speculators?
The daily trading Bitcoin leaving valleys overlooked Bitcoin itself is still an attractive option, especially for individual investors.
You do not have risk-averse bank or pension fund be enough to win the bitcoinból. Although there are indisputable risks to the investment, which is a volatile market compared to other asset classes, there is still room for bitcoin growth in the medium to long term.
If you’re looking for a pound, bitcoin has a proven growth experience. Most recently, you were able to buy 1 BTC in 2017 for $ 806, which is about 10% of the value today.
With the opportunity to rally in the closing quarter of 2019 and the markets maturing steadily, while institutional investors are slowly moving to the idea of supporting bitcoin, there are clear arguments for participating sooner and later.