The cryptocurrency industry has always been defined by volatility, but 2019 stood out as a year of unexpected momentum and pivotal turning points. After the prolonged bear market of 2018—often labeled the "regulatory reckoning" year—many jurisdictions remained uncertain about how to approach digital assets. Yet, by 2019, the tide began to shift.
With major tech players like Facebook transitioning from banning crypto ads to launching their own blockchain initiatives, the industry saw renewed institutional interest. Global economic tensions, particularly trade disputes between major nations, further reshaped investor perceptions—many began viewing Bitcoin as a digital hedge akin to gold.
Despite ongoing challenges—such as the U.S. Securities and Exchange Commission (SEC) continuing to reject Bitcoin ETF proposals—the year brought significant developments across projects, platforms, and key figures. Below is a comprehensive review of the most notable winners and losers in the crypto space during 2019.
🏆 The Winners of 2019
Bitcoin’s Resilient Comeback
2019 marked the 10th anniversary of Bitcoin and the broader blockchain ecosystem—an undeniable testament to the resilience of Satoshi Nakamoto’s vision. Emerging from the so-called "crypto winter" of 2018, Bitcoin kicked off the year with strong bullish momentum.
By the end of Q1, BTC had gained approximately 11%, setting the tone for what would become a standout year. Anthony Pompliano, co-founder of Morgan Creek Digital, explained:
“Bitcoin’s price surged in 2019 because net buyers outnumbered sellers.”
The rally accelerated through Q2, with Bitcoin leading all assets by a staggering 165% increase—climbing from $4,103 to $10,888. Its market dominance rose from 54.6% to 65%, reinforcing its status as the cornerstone of the crypto market.
Even during a sharp correction in Q3—where the network briefly lost $100 billion in market cap—Bitcoin recovered resiliently, reclaiming lost ground and adding an extra 5.4% to its total market share by quarter’s end.
When compared to other asset classes, Bitcoin’s performance was unmatched. Gold, often seen as a safe haven, rose only 17% in 2019. The S&P 500 performed strongly with a +21% gain—but still fell far short of Bitcoin’s returns.
Beyond price, technical advancements strengthened the network. Bobby Lee, CEO of Ballet wallet, highlighted key developments:
“Open-source innovation fueled Bitcoin’s success in 2019. The Lightning Network improved transaction speed, while privacy-focused wallets like Wasabi and Samourai enhanced user security.”
These upgrades positioned Bitcoin not just as a speculative asset, but as a maturing financial infrastructure.
Coinbase: Expanding Trust and Reach
Coinbase solidified its reputation as one of the most secure and compliant exchanges in 2019. While competitors like Binance suffered high-profile security breaches—losing thousands of BTC—Coinbase maintained a clean record, reinforcing user trust.
The company made headlines with its $135 million acquisition of Neutrino, a blockchain analytics startup. Though met with backlash over privacy concerns—particularly on Twitter—the move aligned with Coinbase’s goal to comply with global regulations while expanding its monitoring capabilities.
Despite criticism, Coinbase continued aggressive growth:
- Doubled the number of listed cryptocurrencies since 2018, adding Dash, Cosmos, and Waves.
- Launched its Visa debit card in 10 additional European countries and added support for XRP.
- Expanded globally in May 2019, making its USD Coin (USDC) stablecoin available in 85 countries—up from just 32 the previous year.
The company also secured multiple patents, including one for identifying non-compliant accounts and another for enabling Bitcoin transactions via email—signaling long-term innovation.
Coinbase’s expansion wasn’t just geographic—it was strategic. By scaling USDC and integrating compliance tools, it positioned itself as a bridge between traditional finance and decentralized ecosystems.
Binance: Dominating IEOs and Global Markets
Binance emerged as a dominant force in 2019 through its leadership in Initial Exchange Offerings (IEOs). Unlike traditional ICOs, IEOs offered built-in liquidity by launching directly on established exchanges—making Binance the go-to platform for fundraising.
From Q1 to Q3 alone, IEOs raised over $1.5 billion, with Binance Launchpad at the forefront. Projects like BitTorrent (BTT) and Fetch.ai sold out within seconds, demonstrating massive investor demand.
Binance Coin (BNB), the exchange’s native token, reflected this success—surging 150% over the year and outperforming even Bitcoin in certain periods.
Beyond IEOs, Binance expanded into regulated markets:
- Launched Binance.US, a fully compliant U.S.-based exchange.
- Partnered with BAM Trading Services to navigate complex regulatory landscapes, though still restricted in states like New York.
This dual strategy—innovation through IEOs and compliance through regional platforms—cemented Binance’s global influence.
📉 The Losers of 2019
Facebook’s Libra: Ambition Meets Resistance
Few events generated more buzz than Facebook’s announcement of Libra, a stablecoin backed by a basket of fiat currencies. Designed to provide financial access to 1.7 billion unbanked users via WhatsApp and Messenger, Libra promised a “simple global currency and financial infrastructure.”
However, regulatory pushback was swift and severe. U.S. Congress demanded Facebook halt development, citing monetary sovereignty concerns. Lawmakers questioned whether a private entity should wield such financial power.
The backlash intensified when major partners—including Visa, MasterCard, PayPal, and eBay—withdrew from the Libra Association. Without these key players, Libra’s path to mainstream adoption dimmed significantly.
While some experts believe government resistance will fade over time, Libra entered 2020 in survival mode—not expansion.
👉 Explore how decentralized alternatives are stepping up where Libra stumbled.
Circle’s Strategic Retreat
Circle, the Boston-based fintech firm backed by Goldman Sachs, co-founded the Centre Consortium with Coinbase to issue USD Coin (USDC). By mid-2019, USDC had facilitated over $11 billion in on-chain settlements—a strong validation of its utility.
Yet behind the scenes, Circle faced turbulence:
- Shut down its consumer payment app.
- Reduced fundraising goals by 40%.
- Conducted two rounds of layoffs—cutting nearly 20% of its workforce between May and late 2019.
- Saw co-founder Sean Neville step down as CEO (though he remained on the board).
While Circle maintained that these moves were part of a strategic pivot—not failure—the series of setbacks signaled a challenging year for a once high-flying stablecoin pioneer.
Craig Wright’s Legal Troubles
Craig Wright’s claim to be Satoshi Nakamoto has long been controversial—but in 2019, it became a legal battlefield.
Wright was sued by the estate of his late partner, Dave Kleiman, who alleged Wright stole 550,000 to 1 million BTC mined jointly before Kleiman’s death in 2013. A Florida judge ruled that if Wright was indeed Satoshi, he must transfer half of his pre-2014 Bitcoin holdings and related intellectual property to Kleiman’s estate.
In October 2019, Wright abandoned a settlement attempt, leading to renewed litigation. He also filed a separate defamation case against podcaster Peter McCormack for publicly doubting his identity—submitting documents that many in the crypto community dismissed as forged.
These legal battles damaged Wright’s credibility and highlighted the risks of unverified claims in a transparent industry.
SEC’s Continued ETF Rejections
Despite growing institutional interest, the SEC maintained its hardline stance on Bitcoin ETFs. In October 2019, it rejected a proposal from Bitwise Asset Management and NYSE Arca, citing insufficient safeguards against market manipulation.
Charles Lu, CEO of Findora, noted:
“For an ETF to be approved, sponsors must prove genuine price discovery—not just hope regulators ignore manipulation.”
The SEC insisted on “surveillance-sharing agreements” with major exchanges before considering approval—a high bar that no applicant had yet met.
Though the agency later announced it would re-review Bitwise’s proposal, progress remained slow. The repeated rejections underscored a key hurdle: regulatory trust in crypto markets is still evolving.
🔮 Looking Ahead: What 2020 Holds
2019 proved that resilience defines the crypto industry. Bitcoin demonstrated strength amid macro uncertainty. Exchanges like Coinbase and Binance expanded reach and innovation. Yet challenges remain—from regulatory scrutiny to credibility crises.
Libra may still influence future digital currency designs. Stablecoins like USDC continue gaining traction. And while ETF approvals remain elusive, growing institutional adoption suggests change is coming.
As we move into 2020, one thing is clear: the line between winners and losers will be drawn not by hype—but by execution, transparency, and trust.
👉 Stay ahead of the next market shift—track real-time data and expert insights today.
❓ Frequently Asked Questions (FAQ)
Q: Why did Bitcoin outperform gold and stocks in 2019?
A: Bitcoin benefited from macroeconomic uncertainty—especially U.S.-China trade tensions—which drove investors toward decentralized assets as hedges. Its limited supply and growing institutional interest further fueled demand.
Q: What are IEOs and why were they popular in 2019?
A: IEOs (Initial Exchange Offerings) are token sales hosted directly on cryptocurrency exchanges like Binance. They gained popularity because they offered built-in liquidity and credibility compared to earlier ICO models.
Q: Why did major companies leave Facebook’s Libra project?
A: Due to intense regulatory scrutiny and reputational risk, companies like Visa and PayPal exited to avoid potential legal complications related to operating a global digital currency without government approval.
Q: Is USDC safer than other stablecoins?
A: USDC is considered one of the most transparent stablecoins—it undergoes regular audits and is backed 1:1 by U.S. dollars held in regulated financial institutions.
Q: Will a Bitcoin ETF be approved soon?
A: While no approval happened in 2019 or early 2020, increased market maturity and surveillance agreements may improve chances in the coming years—but regulatory caution remains high.
Q: What impact did Craig Wright’s lawsuits have on the crypto community?
A: The legal battles reinforced skepticism around unverified claims of Satoshi’s identity and emphasized the importance of proof and transparency in blockchain development.