Bitcoin (BTC) has experienced an incredible surge of nearly 2,000% since its lowest point during the COVID-19 pandemic. This milestone comes exactly four years after BTC crashed to $3,600 on March 12, 2018, a level that has never been seen again. While Bitcoin holders are celebrating the current price of BTC/USD above $70,000, some are also reflecting on the grim reminder of the crash four years ago.
On that fateful day, the COVID-19 cross-market crash caused chaos across various assets, leading Bitcoin to plummet by over 50% within 24 hours. This crash coincided with the early stages of the coronavirus outbreak, which triggered lockdowns and government interventions, signaling the economic upheaval that was to come. BTC/USD started the day at $7,960 and closed at $4,830, ultimately reaching a low of $3,860 the following day, according to data from Cointelegraph Markets Pro and TradingView.
However, Bitcoin’s recovery was equally impressive, as it reached $10,000 just a month and a half later. Crypto journalist Pete Rizzo highlighted that those who bought the dip on that day have seen a 1,700% increase in their investment since then. But it’s not just those who invested on that specific day who have benefited from the COVID-19 crisis. US citizens who used their first stimulus check, worth $1,200 and distributed in April 2020, to buy Bitcoin are now sitting on a value of $12,930, representing a 400% increase.
Analyst Joe Consorti also pointed out an interesting trend in Bitcoin balances on exchanges. After the March 2020 crash, the balance of BTC on exchanges reached its peak. However, since then, it has been steadily declining, dropping from 17.6% of the total supply to 11.6% and continuing to decrease today. This indicates a shift in the behavior of Bitcoin holders, with more people choosing to hold their BTC in personal wallets rather than on exchanges.
It’s important to note that this article does not provide any investment advice or recommendations. Investing in Bitcoin and trading cryptocurrencies always carries a certain level of risk, and readers should conduct their own research before making any investment decisions.