Daily Market Update - December 23rd, 2020

When 2020 began, Bitcoin was sitting at $7,203 — and little did we know that a rollercoaster ride of a year was heading our way. It all seemed to be going right — and by mid-February, BTC had made a triumphant return to five figures. But clouds were starting to form on the horizon as COVID-19 transformed from a little-known virus into a global pandemic.

...and a Crushing Sell-Off

March 12 will go down in history as "Black Thursday." Sell-offs rocked the stock markets — and Bitcoin was far from immune. In the space of 24 hours, BTC fell by a staggering 47%... the worst one-day decline since 2013. The crash sent shockwaves through the crypto world — and at one point, BTC was on the edge of falling below $4,000.

Digital Gold Doubts

Bitcoin was abandoned as investors sought refuge in the form of cold, hard cash. Given how the cryptocurrency was touted as a safe haven asset, these sell-offs didn’t really back up BTC’s "digital gold" narrative. And as the second quarter began, we started to see a much closer correlation between Bitcoin and the traditional stock market.

The Halving Commences

BTC dusted itself off from Black Thursday quickly — as excitement surrounding the halving grew. Prices had more than doubled from their 2020 low by May 11. There was optimism that slashing block rewards to just 6.25 BTC would serve as rocket fuel for BTC’s value. But the market was rather flat in the days that followed, suggesting the event had been priced in.

BTC’s Best July in Years

In a sign of the fireworks that were about to come, Bitcoin enjoyed its best July performance since 2012 — surging 24% over the course of the month. Futures volumes skyrocketed too, and we were beginning to see signs of institutional activity. In a big boost for crypto, legendary trader Paul Tudor Jones described BTC as "the fastest horse" in the race for gains.

A Coiled Spring

After breaking $12,000 in August, Bitcoin cooled — and traded in a very narrow range above $10,000 for most of September. BTC was acting like a coiled spring… and it was clear that a big price move was brewing. But here was the problem: we didn’t know which way the world’s biggest cryptocurrency was about to go — down or up.

The Surge Begins

During October, BTC rose 25% from $10,819 to $13,546 — within touching distance of 2019’s high. At one point, data from Skew suggested that Bitcoin only had a 7% chance of hitting an all-time high in 2020. Lol. November delivered gains of 43%, but BTC stopped short of hitting $20,000. True to form, there would need to be a little drama before this happened.

A Whole New World 

As some took profit, BTC slid further away from $20,000 in the first half of December — heading below $18,000 at one point. Was the dream over? With institutions buying BTC faster than it can be mined, no. On Dec. 16, the market erupted, and Bitcoin hit $21,310 — a 9.7% surge in 24 hours. Dec. 17 brought us $22,000 and $23,000. What will 2021 have in store?!

14 views0 comments


© 2020 by Rocky Mountain Blockchain Intelligence LLC. All rights reserved.