This year has been difficult for everyone, even the world economy has been challenged by a crisis that no one expected at this level. Therefore, it is valid to take a look at what these five months of 2020 have been like for the price of Bitcoin.
A roller coaster: the first months of 2020 for the price of Bitcoin
Bitcoin began the year at around US$7,100, but a few days later, it skyrocketed because of the tension that arose between Iran and the United States after the assassination of Qasem Soleimani. This gradually brought it closer to US$9,000.
At the beginning of February, the US$9,000 barrier was exceeded, reaching more than US$10,360 by 14 February. This has been Bitcoin’s highest point so far this year. By that time, the effects of the Coronavirus were already being felt around the world. For that reason, some people considered it a good reserve asset.
But in the second half of February, as the pandemic slowly spread and unemployment began to be felt, the need for monetary liquidity challenged the sustained rise in the price of Bitcoin.
By March, the price of Bitcoin was once again below US$ 9,000 but still above the US$ 7,100 with which BTC opened 2020. But, everything changed on what we now know as Bitcoin Evolution, The News Spy, Bitcoin Profit, Bitcoin Era, Immediate Edge, Bitcoin Billionaire, Bitcoin Trader, Bitcoin Code, Bitcoin Circuit, Bitcoin Revolution „Black Thursday“, where it dropped more than 50% in a matter of hours.
After the fall, but before Halving: significant recovery
After March 12, when the price of Bitcoin fell below $5,000 thanks to the massive sale of BTC, many experts were debating what would happen next.
Indeed, at that time Bitcoin was not proving to be the reserve asset everyone had hoped for. Although it had better prospects than other commodities, such as gold, it was not completely isolated from what was happening in the global financial market. The optimists of this crypt currency, on the other hand, were still interested in it because of the expectations generated by Halving.
April can be called the month of the recovery of the price of Bitcoin. In exactly one month, BTC had already recovered almost US$ 2,000. The last week of April was when we felt the impact of the expectations generated around the Halving of Bitcoin most strongly. Thus, this month the price of Bitcoin closed above US$ 8,700.
Finally, in the first week of May, Bitcoin broke through the $9,000 resistance. This level had not been touched since the beginning of March, which further boosted bullish sentiment in the market. Then, hours before the Halving, there was a drop below the price which then became an interesting rebound.
So, since then, Bitcoin has been fluctuating around $9,000, even after the Halving. The latter has been controversial, as it breaks with the predictions of many experts in 2019, who said that shortly after Halving Bitcoin would shoot up to levels never before seen.