Four years ago, on March 12, 2018, Bitcoin experienced a crash due to the global COVID-19 pandemic. The price of BTC plummeted to $3,600, a level that has not been seen since. Today, on the four-year anniversary of this crash, Bitcoin is up nearly 2,000% from its lows. This is a milestone worth celebrating for Bitcoin hodlers, as the price of BTC/USD is now above $70,000.
The COVID-19 crash in 2018 caused havoc across all risk assets, including Bitcoin. In just one day, Bitcoin’s price dropped more than 50%. This crash was a precursor to the economic upheaval that the world would soon experience due to the coronavirus pandemic and subsequent lockdowns. Starting at $7,960 on March 12, BTC/USD finished the day at $4,830 and bottomed out at $3,860 the following day.
Bitcoin made an impressive comeback. Just one-and-a-half months later, the price had reached $10,000 again. Those who bought the dip during the COVID-19 crash are now up 1,700% since then, according to crypto journalist Pete Rizzo. This demonstrates the potential for significant gains in Bitcoin during times of market volatility.
Not only did the COVID-19 crash present opportunities for Bitcoin hodlers, but it also led to success stories for those who diversify their assets into BTC. U.S. citizens who used their first stimulus check, worth $1,200 and delivered in April 2020, to buy Bitcoin are now sitting on $12,930. This represents a 400% increase in value from the original stimulus amount of $3,200. This highlights Bitcoin’s potential as a store of value and an investment opportunity.
A paradigm shift occurred in March 2020, following the COVID-19 crash. Analyst Joe Consorti observed that BTC balances on exchanges peaked after the crash and have been steadily decreasing ever since. Currently, BTC balances on exchanges make up only 11.6% of the total supply, down from 17.6% in 2020. This trend suggests that more people are choosing to hold their Bitcoin outside of exchanges, indicating a shift towards viewing Bitcoin as a form of “freedom money.”
Bitcoin has come a long way since the COVID-19 crash four years ago. The price has surged nearly 2,000% from its lows, reaching over $70,000. Those who bought the dip during the crash have seen significant returns on their investment, and even those who used their stimulus checks to buy Bitcoin have experienced substantial growth in value. The paradigm shift towards viewing Bitcoin as a store of value and a form of “freedom money” has continued since the crash.
It’s inspiring to see how far Bitcoin has come in just four years. The future looks bright!
The paradigm shift towards Bitcoin as a store of value is fascinating to witness.
I can’t believe Bitcoin plummeted so low during the COVID-19 crash. That must have been a devastating time for hodlers.
I can imagine the joy of those who bought Bitcoin during the COVID-19 crash and are now reaping the rewards. 🙌💸