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Home CryptoCurrency One year after the coronavirus debacle, the fall of bitcoin is imperceptible

One year after the coronavirus debacle, the fall of bitcoin is imperceptible

This Friday, March 12, is exactly one year after the fall of more than 40% in the price of bitcoin, as a result of the worldwide declaration of a coronavirus pandemic. And although at that time it seemed that bitcoin, other cryptocurrencies and traditional markets were collapsing without brake, the history of the cryptocurrency a year later is very different.

At its lowest point on that date , the price of bitcoin reached $ 3,782 on the exchange Bitstamp, according to data by TradingView. Now, each bitcoin is equivalent to more than $ 57,000 on the same platform, so we are talking about a 1,400% increase in 12 months.

When looking at the candlestick chart, what in that moment was a drop of more than 50% in less than a week, looks insignificant compared to the price increase of the following months. Particularly, if we put it In perspective with the last six months, since October of last year.

Since the fall to that moment in October, bitcoin had already practically tripled its price. Since then, the cryptocurrency created by Satoshi Nakamoto has broken its all-time high of 2017, around $ 20,000. This figure has already almost tripled it as well, with a new ATH set at USD 58,600. Compared to the lowest moment of last March, the price of BTC has multiplied by 15.

The collapse in the price of bitcoin was left as a red wick on the historical chart . Source: TradingView.

Between December and so far in March, the cryptocurrency has increased between 5,000 and 12,000 dollars monthly. That is, the increases exceed in value even the price at which bitcoin fell on March 12, 2020.

In a long-term perspective, the fall of bitcoin no longer seems representative, considering current prices. However, if we revisit the movement of the chart that day with candles in real time, the outlook looked devastating:

This was definitely my most painful and stressful trading day in my life.
I took a big loss that day, but I didn ‘t blow up my entire account which would’ve happened if this would’ve happened 4 years earlier.
Risk management is everything.https: //t.co/PCr0DAIlj5

– WhalePanda (@WhalePanda) March 12, 2021

Bitcoin bull cycle and expectation of new highs

At the time of writing, bitcoin is around $ 57,200. Its market capitalization remains over a trillion dollars and is among the 10 most valuable assets in the world, taking into account shares of companies and metals such as gold and silver.

The recovery of bitcoin since the debacle of last March has dragged the rest of the cryptocurrency market. For example, the cryptocurrency Ethereum (ETH) reached as high as $ 90 per unit a year ago. Now, it has set a new high above $ 2,000, and it is currently at $ 1,765.

The cryptocurrency market in full, is now over $ 1.7 trillion, on CoinMarketCap records. The figure represents an increase of more than 1,000% compared to the slightly more than 150,000 million dollars of capitalization of the entire market, after the price collapse of a year ago.

The cryptocurrency market has multiplied 11 times compared to the March 2020 drop. Source: CoinMarketCap.

Rewinding a little more in time, We can remember that bitcoin started the year 2020 with a record January. However, the arrival of the pandemic seemed to halt the momentum of the cryptocurrency.

At that time, various analysts were already pointing to the break of the highs of the bull run in 2017. And the general expectation pointed in that direction. This, before the imminent arrival of the third halving of the network, the scheduled reduction of Bitcoin mining rewards, which occurs approximately every 4 years.

Historically, by halving has been followed by a large bull run. In fact, researchers and market analysts predict that bitcoin will even exceed $ 100,000 this year , and have come to consider that the bull run is still in its early stages .

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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