What Will Bitcoin Volatility Look Like in 2020?
As we near the end of 2019 and we head into a new decade, the question on most Crypto enthusiasts lips is “What does the immediate future have in store for Cryptocurrencies?”
For ten straight days in November 2019, the price of Bitcoin fell and didn’t seem to want to stop. This was the longest ‘run’ of the digital assets price falling, on record. So we know that living with the digital asset can at times be a bumpy ride.
2020’s Big Event
Clearly, there are many unknown things that could have an impact on Cryptocurrency price fluctuations, but there is one thing that we know is happening for a fact; ‘The Halvening’.
Back in 2009, when Bitcoin was first launched, miners were paid at the rate of 50BTC for each block puzzle successfully solved. At today’s market price, this is equivalent to the tune of nearly $350,000. A staggeringly high amount of awarded Bitcoins that clearly isn’t feasible now given the market value of Bitcoin.
To combat this, Bitcoin’s blockchain essentially halves its block reward – having previously happened twice to date: Once, in November 2012, where the reward halved from 50BTC per block down to 25BTC, and secondly, in July 2016 where it dropped from 25BTC per block to 12.5BTC. At the time of writing, miners are paid 12.5BTC per block, which equates to roughly $7,000.
Occurring every 210,000 blocks (roughly every 4 years), the Halvening is crucial to create predictable scarcity in the market, meaning Bitcoin (and all other Cryptocurrencies) will likely shoot up in value. The next Halvening occurrence is pegged to hit in mid-May 2020, meaning that successful miners will only be rewarded with 6.25BTC, drastically reducing the reward earned for each block.
Capitalizing on Predictable Volatility
In light of the volatile market surrounding Bitcoin, traders and speculators alike can start to look at options to protect their investment or speculate on the performance of Bitcoin. There is a sleek solution to having the best of both worlds when it comes to volatility, speculation, and price.
Overall, there aren’t many brokers out there that enable you to really take advantage of market movements without having to trade your assets. This is especially obvious when big events such as the Halvening happen, because to benefit, you’d traditionally need to trade your coin before/after the event correctly to make gains.
Instead, there are some more options that you can utilize to make profits without having to trade your coins. For example, newcomer broker CryptoRocket is an ECN STP broker that offers a specific feature to capitalize on market movements without the need to actually trade.
They call their innovative solution ‘Vaults’, which are where all deposits are stored. There are 4 main Vaults that they offer, including 3 standard FIAT currencies: USD/GBP/EUR as well as BIT’s.
Having an account balance in BIT’s means that when you deposit into your Vault in BIT’s traders are allowed the freedom to speculate on the price of Bitcoin without having to place a trade on the integrated MT4 platform.
If a trader deposits 1 BTC into their USD Vault, then the price will be locked in at the current market value price of Bitcoin.
1 BTC deposited into USD Vault = $7,197.72 (current BTC price) displayed in the Vault
1 BTC deposited into BIT’s Vault = 1,000,000 BITs displayed in the Vault.
This is where things get interesting. Should the price of 1BTC rise to $8,000 the trader who chose the USD Vault would have a Vault Balance of $7,197.72 despite depositing in BTC.
Should the trader chose to withdraw the 1,000,000 BITs without trading, the client would make gains due to the rise in the price of Bitcoin. Without having to open a position!
The great flexibility here is that there are liquid funds ready to trade on the Crypto market whilst allowing room for speculation if the trader does not see a position that interests them. There will be no deposit delays potentially interrupting a traders access to the markets.
Should you choose to protect your investment whilst trading, it would be advised to use one of the 3 FIAT currency Vaults.
This is an ideal environment to HODL as well as trade on over 30 digital assets.
New ECN STP broker, CryptoRocket caters to all your Crypto trading needs wrapped in one user-friendly interface. CryptoRocket proudly provides an arena where traders can trade Crypto with high leverage on the MT4 platform but at the same time showing versatility to cater for HODLERS, traders, market speculators, and pessimists.
This creates an ideal environment to HODL as well as trade with leverage on over 30 digital assets.
Make the Most of Market Movements
With events like the Halvening, it’s a fact that the Crypto market is a volatile one and whatever your stance is in terms of holding or speculating, there are ways in which you can increase your earning power through trading, holding or both.
Whether you choose to HODL or trade do not let FOMO get in the way with the aforementioned trading solutions.
For more information on CryptoRocket please visit their website.