The international Covid 19 pandemic spread havoc throughout many countries, and not just their healthcare systems and civilians, but their economies too. While some have bounced back more quickly than others, there is likely to be a tumultuous wake of destruction for months, perhaps years, to come. Despite the destruction, one thing has become evident and that’s that Bitcoin reigned supreme over the pandemic.
Black Monday, Black Monday II, and Black Thursday
A date that will be known as Black Thursday for decades to come is the stock market crash in 2020. Starting in February, the devastating downtrends of the market continued to hover until April. The crash was the worst the Wall Street markets have seen since trading in the Great Depression plummeted in 1929. Also commonly known as the Coronavirus Crash, the bear market is a clear indicator towards the recession that the Covid 19 pandemic instigated.
While the crash officially began on 20 February, it wasn’t until March that the truly devastating consequences were seen. Playing out in the charts, the first of three big hits happened on 9 March with the Dow Jones Industrial (DJI) dropping 7.79%. Marking a 20% decrease from its most recent peak, this brought the 11 year bull market run to an end – the longest in American stock market history.
The next blow happened later that week on Thursday, 12 March, dropping another 9.99%, and then in the final hit, what has become known as Black Monday II, the DJI dropped a further 12.93% on 16 March. Called Black Monday, Black Thursday and Black Monday II respectively, the devastation rippled through many markets, economies, and investors’ portfolios.
Bitcoin Was No Exception
Unfortunately Bitcoin was not exempt to the mass sell off, and fell prey to the bears as well. The Bitcoin market was doing relatively well, with 1 BTC trading at $9,000 on 6 March before falling to $7,600 on 12 March. Things then turned really south as investors started pulling their money from all their avenues. By 16 March, Bitcoin was trading at $4,850.
Thankfully, Bitcoin bounced back quickly in a brave display of resilience and was trading over $8,000 before the end of April. The cryptocurrency continued to grow as assumably investors took their money from the stock market and instead invested it in the decentralized currency following a series of stimulus checks and banks printing money. Ironically, cryptocurrencies were created as a response to the Global Financial Crisis of 2007 – 2009 to offer people an alternative monetary system that is exempt from government and banking interference.
Following the crash in March 2020, Bitcoin entered bull territory and enjoyed a steady and healthy climb. The cryptocurrency gradually over the next eight months increased in value as it ascended to the highest it’s been valued at since December 2017. Whether new or seasoned to the cryptocurrency markets, traders will remember December 2017 as the event that put Bitcoin firmly on the map, and in mainstream media around the world. That month Bitcoin reached its all time high of $20,089.00, on 17 December. Edging closer to its goal, it appears that BTC is gunning for a new all time high.
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Bitcoin Reigned Supreme Over The Pandemic
With devastating blows to the stock markets around the globe, it appeared that Bitcoin and gold were two of the top performing asset classes of the year. While Bitcoin has enjoyed a gradual increase to an almost four year high, Gold too reached its all time best price this year in August. As Bitcoin reigned supreme over the pandemic more and more investors chose to onboard the more “reliable” cryptocurrency. Largely fueled by the multiple stimulus packages as well as the mass printing of money sending inflation rates soaring, Bitcoin is a viable and long term solution to traders looking to put their money in a more stable environment.