The Crypto Rollercoaster Ride Of 2020 (So Far)
Last Updated on 7 September 2020 by CryptoTips.eu
What a year it’s been already. We started with Australian bush fires in January (which everyone assumed would be the top story this year) over to a global pandemic, BLM protests worldwide, riots and looting in the US, a global stock market crash followed by a rise, murder hornets… in all, it was just too much.
Meanwhile the world of crypto saw a historic shift for Bitcoin all the way down from $3,600 in March to $10,000 upon its May halving and even higher to $12,000 in August. DeFi exploded onto the crypto sphere over the summer and terms like yield farming, food coins and meme coins were all the hype.
Winter
As we chimed in the new decade, the Bitcoin price passed to a level of around $8,000 and everyone was eager for the crypto year to take off. Promises of Ethereum 2.0, a new update for Cardano, buzz around Chainlink, a court case for Craig Wright and above all, an upcoming halving of Bitcoin itself, were all eagerly awaited.
The hype grew into hope and positivity. By the end of January, Bitcoin traded near the $10k mark. Many looked forward to the halving still whilst in the background there were sounds of a strange disease gaining ground.
Spring
By February it seemed that China had closed off several cities from the world for a spreading illness called Covid-19. EU and US stock markets didn’t seem to mind as long as it was over in Asia and continued their upward trend.
In the background someone spoke of DeFi (Decentralized Finance) and Vitalik Buterin called out a Buzzfeed article for misrepresenting it as lending money in exchange for crypto.
Bitcoin miners shifted from Asia to the US slowly but surely.
March came around and all of a sudden Covid sprung up in Italy. Panic took over the stock markets which quickly sold off. The Federal Reserve tried to intervene but a steep drop of global markets was the result of Italian Prime Minister Conte being the first to introduce a countrywide lockdown in Europe.
Panic selling set in and by the second week of March, Bitcoin dropped to a level of $3.6k on what will forever be known as Black Thursday.
Oil dropped to the lowest ever levels and Texas Intermediate went towards a negative price at a certain point.
Markets stabilized in April and started on an upward trajectory on the hope of a V-shaped recovery. Bitcoin came out of the doldrums and rose like a phoenix again. By the month of May and the halving, it hit $10k again.
DeFi was quite the buzz by then and Chainlink started moving forward.
Summer
In June and July, as more and more DeFi coins sprung up, values multiplied ever faster. Analysts warned of a possible bubble in the market but the enthusiasm for coins like Yam, Yearn Finance and Sushi proved unstoppable. Chainlink rose ever higher on the CoinMarketCap list and Bitcoin made worldwide headlines as it rose to $11k again and was nominated as a 2020 safe haven together with gold.
A TikTok challenge brought Dogecoin back to the foreground.
Tesla stock fed off the charm of Mr Elon Musk and his many ideas for other companies like SpaceX, the Boring Company and Neuralink. Americans decided that the most popular investments of 2020 so far were indeed to be Bitcoin and Tesla.
August drew around and the stock market really started heating up. Tesla’s board thought that people wouldn’t buy anymore because of the psychological threshold of owning a stock above $2,000. A five to one split was the logical outcome.
Chainlink touched $20 and moved to the fifth place on Coinmarketcap. Cardano rose as the Shelley update proved successful an CEO Charles Hoskinson was named King of the Rats. VeChain, which had seen many positive media mentions, was ready to reach a new all-time-high.
DeFi was the absolute buzzword and even Justin Sun claimed he would be getting into it with a new Sun coin soon. Yield farming and food coins like Sushi, HotDog, Yam and Kimchi were being hyped up.
Fall
Indian Summer came around at the beginning of September and the second day of the new month saw a brutal selloff of stocks and crypto markets. Major whiplash movement tore Bitcoin back down from $12 to $10k and Ethereum from $500 t0 $350. DeFi coins experienced a major correction whilst Tesla dropped 20% over three trading sessions, thus officially entering bear market.
Today
As the US markets remain closed for Labor Day, it will be interesting to see whether crypto and stocks continue to fall further or will stabilize. Whatever may come, it is clear that 2020 is a year to be forever remembered.
