The BTC black Thursday anniversary is here which was the date when Bitcoin crashed almost in half but what has happened since? Let’s recap and see more in our latest Bitcoin news.
A year ago, Bitcoin experienced one of its worst dumps ever as in Mid-March the COVID-crash got its name as the Black Thursday. A lot has changed since then. The BTC Black Thursday anniversary reminds us of the time when the deadly pandemic started and BTC went on one of its biggest crashes in history. The price was slashed in half in a matter of hours and dropped to $4600. The drop was the biggest percentual price loss for BTC since it was launched in 2009 and led to more questions about the value of crypto as a “Safe haven asset” that is uncorrelated to other assets.
Since then, BTC took off like a rocket, smashing through record highs and making ways towards $60,000. Jason Deane, who is a crypto market analyst with Quantum Economics noted:
“It’s easy to forget that the crash of March 12, 2020, affected all categories—even traditional ‘safe haven’ assets like gold—in a frantic flight to cash that saw Bitcoin being treated the same as any other class. However, the permanent change in the macro financial landscape that followed created a new wave of confidence in crypto assets, especially Bitcoin, which went from being a fringe and experimental concept to being a strong contender for a long term store of value.”
In only a month, BTC regained its losses but it didn’t get to where it is today on its own. The Defi craze in 2020 helped boost the market recovery. DeFi caught fire in mid-2020 and caught the attention of investors while BTC provided a gateway to enter this new territory. With more people rushing into DeFi and more BTC Swapped hands, the price of the coin recovered and the institutional investors added more fuel to the fire.
Microstrategy made its first jump into BTC by investing $250 million investment and over the year, the company made a few more money splashes and it now holds more than $5 billion in BTC as a part of the reserves. After Microstrategy, other companies followed. Jack Dorsey’s Square announced a $50 million investment in BTC back in October and this also boosted the price of BTC. A few days later, PayPal announced the launch of the service to purchase, sell and store crypto which helped the price even more.
The biggest splash came at the end of the year when Elon Musk invested $1.5 billion in BTC helping it reach uncharted territory where it is today.
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