The year 2020 will surely come down to history books. With the COVID-19 pandemic and its rapid spread, the impact has led to a global crisis we have not seen before.
Looking back to March 2020, global lockdowns had been imposed, resulting in many of us to stay at home. While many had gone remote working, many jobs were also cut due to economic woes. The increased time at home has spurred the hunt for new online income streams.
For the Forex market and the cryptocurrency market, the year was a successful one. For Forex, trading activities had risen to record levels. The global market reacted in a whole different fashion, creating high volatility that opened up trading opportunities, even in the US Forex trading industry, known for its legal restrictions towards brokers. It is important to remember that prior to 2020, brokerage companies experienced decreased trading volumes mainly due to regulatory concerns. Many US Forex firms announced a decline in turnover, which resulted in many of them shutting down operations.
The cryptocurrency market also experienced some highs in 2020. As prices of crypto frontrunners like Bitcoin and Ethereum increased, consumer interest had gone up dramatically. As of this writing, Bitcoin and Ethereum are worth $37,851 and $1,191.92, respectively.
There’s no denying that both the Forex and crypto world experienced significant success in 2020. But it’s interesting to know if this trend will continue in 2021.
Forex Market in 2021
The COVID-19 pandemic has had a huge effect on the volatility of the Forex market, resulting in so many movements. For several Forex brokers, this was good news, as they had seen a remarkable increase in trading volumes. However, the question now is whether this will continue in 2021.
Finance Magnates, an online trading information center, consulted a variety of Forex industry experts to get their insights on what to expect this 2021.
Exness CCO Davis has told FM that the growth witnessed in 2020 will be maintained this year. According to him, Exness had experienced a significant increase in account openings during the lockdowns. Increased time at home for new and current customers resulted in a rise in trading volumes. This said, the executive believes that this trend will continue this year.
Amana Capital CEO Ahmad Khatib shared the same sentiments. The previous records of the number of new traders had been broken last year, said Khatib, adding that the company had performed well in all regions.
TopFX CEO Alex Katsaros said as people stayed more at home because of the lockdown, they transferred their stress to the market.They were able to take on more risks as the regular market movements would be important. Alex, however, said that he expects traders to be more controlled in 2021. Alex also noted that 2020 was not a successful year for introducing brokers as they failed to reach potential clients due to restricted networking activities.
Cryptocurrency Market in 2021
Despite COVID-19 wreaking havoc on global markets, consumer interest for the cryptocurrency market had surged in 2020. In fact, analysts at JPMorgan said that amid the pandemic, cryptocurrencies like Bitcoin were more resilient than currencies, equities and even gold. A report by them showed while all assets lost value amid the pandemic, cryptos recovered faster than other assets.
Bitcoin, as of this writing, is priced at $37,851, while its rival Ethereum is worth $1,191.92.
Considering that the cryptocurrency market is such a volatile market, it’s difficult to say if digital currencies, and which of them will experience price surge in 2021. But we know that this market will not go away anytime soon. The crypto market is here to stay! We expect more traders and investors will take interest in digital currencies. Moreover, more companies and institutions will adopt blockchain technologies to improve their businesses.
2020 was a huge year both for Forex and cryptocurrency. Both markets had experienced all-time highs, and this trend is seen to continue through 2021.
If you’re looking to explore ways to earn online, you might want to consider Forex and crypto trading. But before making a dive, make sure that you equip yourself with proper knowledge.