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Looking back at 2020

Looking back at 2020

We can say that 2020 is a year that we will not soon forget. And unfortunately, most people will not have happy memories of this year either. A lot of crazy things have happened. Also, in the field of crypto. Just think of all the peaks and troughs of Bitcoin. So, let's take a look back at all of the crypto events of 2020.

Positive start of 2020

Good news started in January 2020. This is how the first crypto bank in the United Kingdom was founded. Former Barclays employee announced to start a new company called Ziglu, which would only issue digital loans. In the same month, the Commodity Futures Trading Commission (CFTC) announced that the American Federal Reserve should issue its own digital currency.

This good start was followed by the news that the Swedish government was going to test with a Central Bank Digital Currency (CBDC). This would happen in certain areas from February 2021. Sweden was not the only government to speak positively about a digital currency. China, India and Korea took the lead in cryptocurrency in Asia by speaking out as pro-crypto.

Crash in March
Then came the corona pandemic. The whole world was shocked, and this was also reflected in the stock markets. Both the stock price and the Bitcoin price crashed. As a result, Bitcoin fell below $ 4,000 on March 12. This was also the largest loss that Bitcoin has experienced in one day (27% decline). That's something you can't imagine now.

In April, however, Bitcoin returned to a value of $ 7,000. Exactly a month before the third halving was to take place.

Bitcoin halving in May
In May, fund manager Paul Tudor Jones announced that he has invested in Bitcoin. He also wanted investments against inflation in his fund. The same month the well-known Bitcoin halving took place. May 12 to be precise. There were many rumors in advance about what would happen.

The halving meant that the reward that miners receive has been halved. This halving ensures that Bitcoin is worth a lot more and can also withstand inflation better. For example, Frank Holmes said that "if tomorrow the supply of all gold mines in the world is halved, gold will suddenly be worth a lot more."

And we saw that with Bitcoin as well. Several months after the halving, it was already worth $ 9.00- $ 10,000.

More positive news in the summer months

In the summer months, there was some positive news again. The US Treasury Department that controls US banks (OCC) clarified the permissions for US banks to hold crypto funds.

In August, MicroStrategy announced it had invested $ 450 million in Bitcoin, as they see the future of Bitcoin positively. And they weren't alone in seeing a bright future in digital currencies. The People's Bank of China said that at least 2 trillion Yaun ($ 299 million) was used in at least 4 million transactions up to November.

Bitcoin seems unstoppable
When PayPal announced in October that it would support Bitcoin payments, that was the starting shot for Bitcoin's rise. More and more investors turned to Bitcoin, after which it rose from $ 10,000 to $ 16,000 in two months. More and more people were affected by FOMO (Fear Of Missing Out) and decided to also get into Bitcoin, causing this digital currency to rise even further.

For example, Druckenmiller and Guggenheim invested a lot of money in Bitcoin at the end of the year. That is also the biggest difference we saw with 2017. Bitcoin was more of a bubble by then. Individuals, in particular, got into Bitcoin because media was talking a lot about it. Now it is different as large investors and companies also choose Bitcoin. Rick Reider (BlackRock) said he believed that crypto is a "keeper". Square Inc, PayPal and Grayscale also expressed a lot of confidence in Bitcoin. This only ensures that investors gain more confidence in Bitcoin, completing the circle.

What can we expect in 2021?

Of course, everyone is hoping that 2021 will be a better year compared to 2020 in many aspects. In terms of crypto, 2020 was not such a bad year at all. We are therefore curious what to expect in 2021.

Some analysts believe Bitcoin will hit $ 100,000 or $ 318,000 by the end of 2021. Still, no one knows what's actually going to happen, and all of this remains speculation. Time will tell. Everyone is curious if Bitcoin will make history again in 2021, and we will actually know in a year's time.