Then, what happened to the cryptocurrency market such as bitcoin over the course of a year?
As of 365 days after the so-called “Black Thursday,” bitcoin has risen more than 1400% in price to over 57,000 dollars, and the market cap has also exceeded 1 trillion dollars.
Source: Coin Market Cap
Several significant events have served as the backdrop for Bitcoin to reach its current price. First of all, Micro Strategy has invested billions of dollars in bitcoin on several occasions, leading institutions to invest in bitcoin.
In this atmosphere, Tesla’s Elon Musk’s purchase of $1.5 billion worth of bitcoin earlier this year fueled the rise of bitcoin.
One of the events that enabled the continued rise of Bitcoin along with the entry of major institutions into the cryptocurrency market was the half-life of the Bitcoin network, which was completed in May last year.
The half-life of Bitcoin’s mining rewards halved has reduced the supply of Bitcoin to the market. Eventually, the insufficient supply compared to the rapidly increasing demand intensified supply pressure and made it possible to continue to increase prices.
In addition to institutional investors and the Bitcoin market, the US government has also contributed to the rise of Bitcoin. The US government continued to supply astronomical money as an economic stimulus to respond to the coronavirus pandemic.
As a result, concerns about the possibility of inflation increased, and the demand for bitcoin investment by institutions and individuals surged, leading to a rise in prices.