Bitcoin (BTC) has experienced a remarkable increase of nearly 2,000% from its COVID-19 lows as the fourth anniversary of its crash to $3,600 approaches.
On March 12, 2018, BTC price action began a dramatic plunge to levels that have not been seen since, as risk assets tumbled worldwide.
Bitcoin enthusiasts are celebrating four years since the COVID-19 crash, as BTC/USD surpasses $70,000. However, some are using this occasion to remember the challenging times.
Exactly four years ago, the cross-market crash caused by COVID-19 wreaked havoc across various assets, leading Bitcoin to plummet by over 50% in a single day.
At that time, the coronavirus was just starting to trigger lockdowns and other reactive measures from governments, and the markets were already anticipating the economic turmoil that was to follow.
Starting at $7,960 on March 12, BTC/USD closed at $4,830 and reached a low of $3,860 the following day, according to data from Cointelegraph Markets Pro and TradingView.
The subsequent recovery was equally impressive, as just one-and-a-half months later, the price had risen back to $10,000.
Crypto journalist Pete Rizzo highlighted the gains made by those who bought the dip, stating that they are now up by 1,700% since then.
However, the success stories of COVID-19 diversification into BTC are not limited to those who took advantage of the crash. Data from BitcoinStimulus shows that US citizens who used their first stimulus check, worth $1,200 and distributed in April 2020, to buy Bitcoin are now sitting on $12,930. This represents a 400% increase from the initial stimulus amount of $3,200.
In March 2020, Bitcoin sparked a “paradigm shift” in the market. Analyst Joe Consorti noted that BTC balances on exchanges reached their peak following the crash. Since then, the amount of BTC held on exchanges, as tracked by on-chain analytics firm Glassnode, has steadily decreased.
Consorti stated that the percentage of BTC supply held on exchanges has dropped from 17.6% to 11.6% and continues to decline rapidly.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any investment decisions.