Bitcoin, on the fourth anniversary of its drop to $3,600, managed to achieve an increase of about 2000% compared to its lowest levels during COVID-19. On March 12, 2018, the Bitcoin price movement began to retreat to levels never seen before as risk assets plunged worldwide. With the BTC/USD pair surpassing $70,000, Bitcoin hodlers have a lot to celebrate, yet some remember a terrifying reminder of worse times.
Bitcoin and the COVID Era
Exactly four years ago, the COVID-19 market crash caused more than a 50% loss in Bitcoin’s value in a single day, wreaking havoc on risky assets and beyond. As governments were just beginning to trigger curfews and other crippling measures, markets felt a sharp sense of the impending economic turmoil.
According to TradingView data, the BTC/USD pair, which started at $7,960 on March 12, hit a low of $3,860 the next day, ending the day at $4,830. The recovery was equally impressive, with the $10,000 level reemerging just a month and a half later. Cryptocurrency journalist Pete Rizzo commented in a section of a special post on X:
“Everyone who bought at the bottom has since increased by 1700%.”
Noteworthy Data Related to the Topic
Those who decided to act on that day are not the only COVID-19 success stories when it comes to diversifying into Bitcoin. According to data from the BitcoinStimulus tracking source, US citizens who used the first stimulus check worth $1,200 delivered in April 2020 to purchase Bitcoin now own assets worth $12,930. The initial 100% stimulus distribution, valued at $3,200, is now worth 400% more.
Analyst Joe Consorti, examining other data, noted that the overall Bitcoin balances on exchanges peaked after the crash in March 2020. Since then, balances on exchanges tracked by data analysis firm Glassnode have entered a broad downward trend that continues to this day. Consorti commented in part of his remarks accompanying X last week:
“Since then, supply has dropped from 17.6% to 11.6% and is still rapidly declining. That day marked a serious paradigm shift from tech stocks to freedom money.”
