Bitcoin crashed on March 12, 2020.
It hit $3,600 on BitMEX.
The world was dealing with the initial economic impacts of the global COVID pandemic, and the crypto market was one of many casualties.
Let’s Qualify What We Mean by “Crashed”
In the year prior to March 12–13, 2020, Bitcoin was trading in a range between roughly $5,000 and $12,000.
In the immediate months leading into March 2020, it was trading in a tighter range between about $7,000 and $9,000.
While it did see a massive correction in the COVID March 2020 lows, Bitcoin was by no means decimated.
One Year Later
Traditional financial markets crashed and rallied since the start of COVID. So has Bitcoin and the cryptocurrency market. The “main street economy” is another story…
One year after March 12, 2020, Bitcoin has eclipsed a $1 trillion market cap on multiple occasions and has done a 15X in terms of unit price.
Bitcoin is the fastest horse.
It continues to live up to the billing as the best performing asset of the last decade — in spite of the March 2020 crash.
What Did the Crash Mean?
The March 12th crash was a stress test for Bitcoin.
Why did Bitcoin crash?
Traders in the global equity markets sold off across the board. COVID FUD prompted a retreat to cash.
Increased volatility accelerates liquidation.
On March 12th, lenders were also forced to liquidate collateral. The transaction volume on the blockchain became congested, and we haven’t even gotten into the problems that shook DeFi on March 12.
The nascent cryptocurrency market was put to its most significant test since Mt. Gox. Some might consider it a failure, depending on the exchange you were dealing with or DeFi altcoin or protocol you were using.
But one year out from March 12, 2020, Bitcoin looks very different than most (outside of longtime BTC maximalists) would have expected.
Bitcoin is mainstreaming.
It continues to hit all-time highs.
COVID has further increased institutional adoption. Cryptocurrency exchanges and DeFi protocols that struggled on March 12 have only gotten stronger and attracted more interest.
Bitcoin Has Matured
Public companies now hold BTC on their balance sheets.
We’ve seen a $1 trillion market cap.
Coinbase is preparing for an IPO.
Crypto lending platforms like BlockFi have surged. Many of these platforms weathered March 12th, extremely well given the conditions.
March 12, 2020, defined Bitcoin.
To HODLers like myself, it was just another day. The price action was nasty, but the world was in dire straits… so it didn’t matter.
Bitcoin has been declared dead countless number of times. For the critics, March 12, 2020, was an opportunity to get rid of Bitcoin.
And yet, Bitcoin persisted.
As it does, time and time again, Bitcoin remained resilient in the face of extreme volatility and global uncertainty.
Bitcoin is here to stay.
The world’s largest cryptocurrency continues to extend its market cap lead over altcoins that mimic its most vital characteristics.
Bitcoin doesn’t provide the sexy startup profiteering that Silicon Valley loves, and that’s fine by Bitcoin. The recent bull market has seen an influx of cash and interest in DeFi, pumping many altcoins.
Bitcoin continues to generate gains based on its core value props without needing to raise venture capital.
Sure, institutions are betting on Bitcoin, but they’re just becoming HODLers like the rest of us. Perhaps the greatest innovations around Bitcoin come from its impact on the world around it (and not the other way around).
One year after March 12, 2020, consensus is that Bitcoin is worth holding. It’s worth having in your portfolio, whether you’re an individual or an institution. Bitcoin is worth knowing about and looking at. Governments, institutions, and individuals are all paying attention to it.
Bitcoin crashed on March 12, 2020 — but it didn’t die. It never has — AND, each day that passes makes it more likely that it never will.