Bitcoin has been a hot topic in the financial sector for decades, but 2020 is widely considered to be a special year for Bitcoin. From global economic turmoil to uncertainty in financial markets to the dramatic fluctuations in Bitcoin prices, 2020 is undoubtedly a year full of challenges and opportunities for Bitcoin. Let's explore why 2020 is so special for Bitcoin.

As a decentralized digital currency, Bitcoin has ushered in unprecedented attention and recognition in 2020. As the global epidemic spreads and traditional financial markets are turbulent, investors are looking for safe-haven assets, and Bitcoin is favored for its scarcity and anti-inflation characteristics. In the first half of 2020, the price of Bitcoin once exceeded the $10,000 mark, which once again sparked enthusiastic discussions about digital currencies.

In 2020, Bitcoin has become more than just an investment tool, it has become a safe-haven asset. Globally, government uncertainty about monetary policy has led to people questioning the traditional monetary system, and Bitcoin's decentralization and lack of government control have made it a "digital gold" in people's eyes. Especially in the global epidemic crisis in 2020, Bitcoin has shown its potential as a "safe haven", attracting more and more investors and institutions.

In addition to its role as a safe haven asset, Bitcoin has also ushered in some important technological advances in 2020. With the continuous development of blockchain technology, the security of the Bitcoin network has been further strengthened, and the transaction speed and scalability have also been significantly improved. 2020 also witnessed a major breakthrough in the lightning network technology on the Bitcoin network, making Bitcoin transactions faster and more convenient. These technological advances have laid a solid foundation for the future development of Bitcoin and provided more possibilities for its promotion and popularization around the world.

It is undeniable that in 2020, Bitcoin also faced some challenges and controversies. The volatility of the Bitcoin market is still large, and the sharp fluctuations in prices have brought considerable risks to investors, and also attracted the attention of regulators to the digital currency market. Globally, the laws and regulations on digital currencies in some countries are still not perfect, and the regulatory gaps have also brought certain uncertainties to digital currencies such as Bitcoin. However, it is these challenges and controversies that have also prompted the Bitcoin community to be more united and mature, and jointly explore the future development path of digital currencies.

In general, 2020 is a year full of challenges and opportunities for Bitcoin. From attracting much attention as a safe-haven asset, to making important progress in technology, to facing some challenges and controversies, Bitcoin has experienced a series of ups and downs and changes in 2020. However, whether it is price fluctuations or technological innovations, Bitcoin is constantly evolving and developing, showing its potential and prospects as a new type of digital asset. 2020 is destined to be a milestone in the history of Bitcoin and has laid a solid foundation for future development. Let us wait and see how brilliant Bitcoin will be in its future development.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The entire asset class of cryptocurrencies is tied together, and whenever Bitcoin rises, other cryptocurrencies are bound to follow suit, it happened in 2017 and now it is happening in 2020. Over the past 8 weeks, Bitcoin has been climbing, accelerating through multiple resistances, and other assets such as Ethereum have followed suit. As Bitcoin’s gains hit new all-time highs, Coinmetrics reported another index that distinguishes Bitcoin in 2020 from other bullish years.

Higher ratio of new highs to new lows in 2020?

The data in the chart shows the average ratio of crypto sentiment assets that hit new 30-day highs minus the ratio of assets that hit new 30-day lows. While Bitcoin and Ethereum have each risen in this regard, approaching their previous highs, the average number of highs in 2020 is significantly higher than in 2017 (blue chart).

While there are many reasons to be more optimistic about this year, the above data clarifies the fact that 2020 may be the most bullish year for Bitcoin to date.

Bitcoin achieves higher ceiling than in 2017

Many current Bitcoin on-chain metrics are now about to reach new all-time highs. BTC’s market cap averaged $330 billion last week, with daily active addresses reaching 1.2 million. Now, these fundamental highs were also reached in 2017, but there are some key aspects that have changed over the past three years.

First, the supply of Bitcoin has increased. Since January 2018, the amount of Bitcoin added to the circulating supply is worth more than $20 billion at current prices, which has indirectly improved Bitcoin’s liquidity in the market, which has led to a new high in BTC’s realized cap.

Market cap is a variable value that changes based on Bitcoin’s price, while Realized
Cap refers to the total amount of Bitcoin in the market, which is calculated by BTC’s price when it actually last moved. This value represents BTC’s organic improvement, which is currently at a new all-time high.

Overcoming inflation fears?

During the turbulent period of March, market sentiment was very low as Bitcoin faced its first potential economic uncertainty. The traditional market was in chaos, and it was eroded by cryptocurrencies. Although many people denied BTC’s recovery during this period, they will bite their teeth at this moment as they witness BTC’s trajectory.

Bitcoin has more than quadrupled in value since March 14, and any gain above $20,000 would be a five-fold gain in less than a year. 2020 will be a forgettable year in the larger context, but in retrospect, it is undoubtedly Bitcoin’s best year yet.