Despite the inherent volatility of the cryptocurrency market, 2019 proved to be a year of unexpected twists. Analysts dubbed 2018 the "Year of Regulatory Reckoning" due to its prolonged bear market, leaving many jurisdictions grappling with ambiguous crypto policies. However, 2019 marked a resurgence—fueled by tech giants like Facebook shifting from hostility to cautious embrace of cryptocurrencies.
While global events (e.g., trade tensions) altered investor perceptions of Bitcoin’s utility, hurdles persisted—such as the SEC’s repeated rejections of Bitcoin ETF proposals. As the year concludes, let’s examine the standout successes and failures across projects, individuals, and enterprises.
Winners
Bitcoin’s Remarkable Rally
2019 celebrated Bitcoin’s 10th anniversary, showcasing its resilience. Emerging from the 2018 "crypto winter," Bitcoin opened the year bullishly, gaining ~11% by Q1. Anthony Pompliano of Morgan Creek Digital noted:
"Bitcoin surged because net buyers outweighed sellers."
By Q2, BTC skyrocketed 165%, peaking at $10,888, while its market dominance climbed from 54.6% to 65%. Investors increasingly viewed Bitcoin as a hedge against global uncertainty, especially during trade wars. Key catalysts included Libra’s controversial launch and Lightning Network advancements enhancing scalability and privacy.
Despite Q3’s $100B market cap drop, Bitcoin still outperformed traditional assets:
- Gold: +17%
- S&P 500: +21%
- BTC: +150%+
Coinbase’s Strategic Expansion
Coinbase differentiated itself through selective token listings and robust security—avoiding major hacks that plagued rivals like Binance. Its 2019 highlights:
- Acquisitions: Purchased Neutrino to bolster compliance tools (sparking privacy debates).
- Global Reach: Expanded to 100+ countries; launched USDC in 85 jurisdictions.
- Visa Card: Rapid adoption across Europe.
👉 Discover how Coinbase maintains security
Binance’s Bold Moves
Binance capitalized on the IEO boom, fueling BNB’s 150% price rise. Its 2019 milestones:
- Binance US Launch: Navigated regulatory hurdles to enter the U.S. market.
- BNB Performance: Outpaced Bitcoin in growth metrics.
Losers
Facebook’s Libra Stumble
Libra’s ambitious vision—a stablecoin backed by fiat reserves—faced immediate regulatory backlash. U.S. lawmakers demanded a halt, prompting PayPal, Visa, and others to exit the project. Bobby Lee of Ballet speculated:
"Governments will eventually tolerate Libra as a ‘controlled’ alternative to decentralized currencies."
Key Issue: Lack of regulatory approval stalled its 2020 rollout.
Circle’s Downsizing
Despite USD Coin processing $110B+ in transactions, Circle:
- Shut its payment app.
- Cut staff twice (10% in May–June; 10 more recently).
- Saw co-founder Sean Neville step down as CEO.
Craig Wright’s Legal Battles
Wright’s claim to be Satoshi Nakamoto unraveled further:
- Kleiman Case: Ordered to forfeit 50% of alleged Bitcoin holdings ($10B).
- McCormack Lawsuit: Submitted disputed "proof" of his Satoshi identity.
SEC’s ETF Rejections
Bitwise’s Bitcoin ETF proposal was denied over market manipulation concerns. Charles Lu of Findora noted:
"Approval requires proof of price discovery—not just surveillance agreements."
2020 Outlook
Libra’s fate remains pivotal. Meanwhile, institutional interest grows, and Bitcoin’s next rally could be imminent.
FAQ
Q: Why did Bitcoin dominate in 2019?
A: Hedge demand, Lightning Network upgrades, and Libra’s spotlight boosted adoption.
Q: Will Libra launch in 2020?
A: Unlikely without government compromises.
Q: What’s next for Bitcoin ETFs?
A: SEC insists on anti-manipulation proofs—expect delays.