Last week of 2019 This year we witnessed Bitcoin recover from the crypto winter, climb back above $14,000 in the summer, and finish up approximately 96% on the year.
The market value of Bitcoin has long accounted for more than 80% of the entire cryptocurrency market leading up to 2017. However, with the rise of ICOs in 2017, the emergence of a large number of cryptocurrency projects eroded Bitcoin dominance to as low as 30% at the beginning of 2018, according to Coinmarketcap. But with frothy ICOs fading out and investors becoming more rational, Bitcoin dominance has recovered to nearly 70% as of today. The recovery of Bitcoin dominance highlights Bitcoin’s growing identity as the de-facto store of value amidst a variety of other unproven token use cases.
One of the most significant developments in the cryptocurrency market in 2019 was regulatory. China’s “SatoXi” contributed the crypto rally this summer as China embraced blockchain technology. Through several U.S. Congressional hearings, cryptocurrency not only gained awareness from the general public, but solidified its status as an important policy topic that is not going anywhere. Although there was not all positive news, as we noted before, cryptocurrency has never been this mainstream before. With more regulatory clarity anticipated, we believe there will be more developments in 2020.