Fluctuations returned to the cryptocurrency market on Wednesday with the Bitcoin price moving up the $8,000 level the first time in months, according to Decrypt website.
The cryptocurrency had been moving sideways during the last six months, the data unveiled by San Francisco Open Exchange (SFOX) showed.
Researchers of the cryptocurrency prime dealer SFOX stated that despite the volatility of most cryptocurrencies including the BTC, the crypto market ended 2019 on a relatively stable note.
Although the market witnessed historical volatility of more than 70 percent at the beginning of 2019, the BTC ended out the year at around 32 percent, according to SFOX latest report.
“BTC is proving to be largely uncorrelated with both the S&P 500 and gold,” the report stated. “This data about Bitcoin’s high returns and low volatility made BTC a compelling tool for portfolio management in 2019.”
The researchers also said the BTC has recorded strong y-o-y returns compared with gold and the S&P 500, as well as other cryptocurrencies.
According to the report, this year may be entirely different despite the volatility seen in 2019. “The coming months present several potentially impactful, yet difficult to evaluate factors.”
Those factors include BTC options products and the BTC halving that is scheduled to take place in May 2020.
Charles Hwang, managing partner at Lightning Capital, expected the halving to the BTC price in a range between $20,000 and $50,000.
Hwang assumed that demand would remain steady at 633,000 Bitcoin in 2021.
“There have been many people who claim there is no demand for Bitcoin. However, the data from LocalBitcoins and dark markets demonstrates people are purchasing Bitcoin,” he said.