Crypto Returns Now vs COVID March 2020

A recent stats report by Coin Metrics has some pretty interesting charts showing COVID March 2020 coin returns vs now (December 2020).

On March 12th, the world abruptly changed. Amidst growing concerns over the COVID-19 pandemic bitcoin suffered one of its largest one-day price drops in history. The rest of crypto followed, with most major assets down over 30% on the week.

By Q4 the flood gates began to open. After a tumultuous beginning of the year, institutional investors had finally arrived. 

On October 8th, Square announced a $50M investment into bitcoin, stating “we believe that bitcoin has the potential to be a more ubiquitous currency in the future.” Square joined MicroStrategy and others in allocating part of their corporate treasury to bitcoin. On October 21st, PayPal made an official announcement that it was introducing “a way for customers to buy, hold, and sell certain cryptocurrencies within the PayPal wallet.”

Soon after, Bitcoin’s price began to rise. It would keep on rising for most of Q4. As institutions continued to join, the narratives around bitcoin started to shift. In a quickly changing world, bitcoin is increasingly being endorsed as a hedge against inflation and form of digital gold.