During the pandemic that began in March 2020, Bitcoin has risen in price by almost 600%. At each stage of this staggering growth, one can consider not only global reasons, but also predictions of the future development of digital gold.
The first impetus for BTC was the pandemic and the introduction of quarantine measures around the world. Their paralyzing effect on the economy immediately gave way to a panic flight of investors from funds and commodity assets, which was most clearly manifested in the fall in oil prices in March-April.
The halving in May 2020, after which the reward for the mined block was 6.25 BTC, was greeted by the crypto community relatively calmly against the backdrop of world events, and did not significantly affect the growth.
Another thing is important: either the investor community by that time had already outgrown its skepticism about Bitcoin, or the investor profession itself had become much younger in recent years, but somehow Bitcoin received a serious credit of trust and fully justified it.
The further development of the pandemic only increased the number of those who wanted to wait out the crisis in the optimistic cryptocurrency, and the next powerful impetus for BTC was the investment by the British investment fund Ruffer about $ 15 million in October 2020. Ruffer Investment Company announced its decision as a "hedge against monetary and market risks", and thus actually gave Bitcoin a new market status.
And finally, the event that crowned this Olympus was the XRP token scandal, when the Ripple cryptocurrency platform was accused of fraud with unregistered securities. Investments from Ripple, which plummeted by 40%, rushed into the steadily growing Bitcoin and led it to new growth records.
Against the background of the bright events of 2020, an important evolutionary stage was formed, which can become the foundation of Bitcoin as the currency of the future - this is its institutional adoption as a tool to minimize inflationary risks. It was the growing interest and trust of large financial institutions that led to investments such as $ 1.5 billion from Tesla and $ 1.125 billion from MicroStrategy.
Today, the market capitalization of Bitcoin exceeds $ 1 trillion, and forecasts for 2021 reach $ 150 thousand. And if a few years ago the growth of Bitcoin was considered a hype, today such an opinion is regarded as ignorance. The global recession and the losing confidence in the dollar are good ground for the development of Bitcoin as a new defensive asset.