How did Bitcoin fare in 2020 and 2021, the pandemic years?

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Bitcoin’s rise has coincided with the pandemic and lockdowns imposed around the world

A decade after the launch of Bitcoin by a pseudonymous person or group of people named Satoshi Nakamoto, it has grown into the world’s largest and most valuable cryptocurrency. For a long time, Bitcoin remained in the shadows, but in 2017 it started to gain importance when its price rose from $ 777.76 to $ 19,497.40 during the year. But then the gains were lost. As of March 2020, Bitcoin was once again traded at $ 5,000. However, that year Bitcoin’s value rose almost 300%, outperforming gold by a factor of 10. At the end of December 2020, the cryptocurrency was trading at record highs of almost 30%. $ 000.

This Bitcoin performance has led some analysts to say the cryptocurrency was in the midst of a third big price hike in its 11-year history so far. Around this time the perception of Bitcoin started to change, investors began to see it as digital gold and a store of value. New investors saw it as an opportunity to increase their wealth at a rate unmatched by any other investment vehicle. Despite its highly volatile and speculative nature, cryptocurrency has started to take hold, finding its marks among the masses as an alternative to cash.

Moreover, its rise has coincided with the pandemic and the lockdowns imposed around the world. With economies struggling to stay afloat, funds began to quickly exit the stock markets and move towards gold and cryptocurrency. Bitcoin, which arose out of the 2008 financial crisis, benefited from the next big financial shock the world suffered.

This year, Bitcoin’s journey started on a hyperactive note. By the end of February, Bitcoin had risen by over $ 55,000. The price hike was supported by Tesla’s announcement this month that it had acquired $ 1.5 billion from the digital coin. After a brief lull in March, it peaked for life of almost $ 65,000 in April of this year. Then again, the cryptocurrency market collapsed in May as China tightened crypto mining in its territory. The price of Bitcoin has been cut to less than half of its peak, below $ 30,000. The price has since stabilized and Bitcoin is now trading above $ 42,000.

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