On the anniversary of Bitcoin‘s plummet to $3,600 during the COVID-19 market crash, the cryptocurrency has soared approximately 2000% beyond its lowest point at that time. March 12, 2018, marked the beginning of a significant price retreat for Bitcoin and other risk assets around the globe. While the BTC/USD pair later soared past $70,000, investors reflect on the past turbulence and the subsequent recovery.
Bitcoin’s Resilience Post-Pandemic Dip
Four years prior, Bitcoin experienced a drastic decline exceeding 50% in just one day amidst a worldwide market slump, fueled by pandemic-induced economic fears. With the outbreak triggering severe restrictions, financial markets plummeted. From a pre-crash price of $7,960, Bitcoin tumbled to $3,860 before closing at $4,830. However, it rebounded remarkably, recapturing the $10,000 mark in only a month and a half.
Stimulus Checks to Bitcoin Wealth
In an interesting twist, individuals who invested their first $1,200 U.S. stimulus checks in Bitcoin witnessed their holdings escalate to $12,930. Similarly, the initial stimulus sum of $3,200 appreciated by 400%. Additionally, cryptocurrency balances on exchanges peaked post-crash but have since been on a declining trend, suggesting a shift in investment preferences.
Analyst Joe Consorti highlighted that the overall balance of Bitcoin on exchanges reached its zenith after the March 2020 downturn but has endured a consistent decrease. This suggests a transformative shift in investor sentiment, with many moving from traditional tech stocks to what some call ‘freedom money.’
Despite past volatility, Bitcoin’s journey from a stark crash to a triumphant rise exemplifies its resilience and growing acceptance as an investment asset, offering a silver lining to those who endured the market’s lows and capitalized on its highs.