March 12, 2020, will go down in history books as Black Thursday. That day began a two-day, more than 50% collapse in Bitcoin. It also shook the stock market, precious metals, and crypto.
But yet, that fateful day in hindsight was the best thing to happen to Bitcoin all year and was a crucial factor in the asset achieving a new all-time high and trading near $30,000 currently. Here are all the reasons why.
REMEMBERING THE ONSET OF PANDEMIC PANIC IN EARLY 2020
The panic-selling and cascade of stop-losses being hit as investors cashed out fearing the coming impact on the economy, took Bitcoin back to $3,800.
But the catastrophic moment now marks the greatest historic example of contrarian investing ever and is largely responsible for Bitcoin setting a new all-time high in the same year.
Black Thursday is just a distant memory in terms of price action at this point, but its impact remains | Source: BTCUSD on TradingView.com
WHY BLACK THURSDAY WAS THE BIG BITCOIN MOMENT OF TRUTH
The price action also did two other things: it brought Bitcoin to an extremely attractive price point for newcomers, and at the same time confirmed the highest timeframe resistance turned support and that the bear market bottom was in.
The rise in demand is reflected in the recent price increase and only further amplified by the impact of a recently halved supply. Without Black Thursday, the perfect storm for Bitcoin might not have arrived.
Now that it’s here, it’s forecasted to take over the world of finance.