As is tradition, let's start with an explanation. Mid-March 2020 was a period of intense coronavirus spread and mass lockdowns amidst a pandemic. The world was then faced with uncertainty as no one really understood how states would exist in such an environment.

This has forced investors to get rid of their own assets in a fit of panic - after all, in such circumstances, they want to be in cash, that is, cash more than anything else. The cryptocurrency market was not spared from this situation.


At the time, the top cryptocurrencies by capitalisation experienced a significant collapse, which was measured in tens of percent. Here is the coin ranking from that day, which we described and parsed in detail.

The collapse of the crypto market on 12 March 2020

Be that as it may, such a market downturn was a lucrative buying opportunity for the most adventurous investors. And the situation is now very similar to what happened in March.

What will happen to Bitcoin in the future

As we already noted, Wu compared the recent BTC collapse to the March 2020 crypto market dip, when the cryptocurrency fell to nearly $3,600 from $8,000 in just a couple of days amid news of COVID-19 proliferation.

During that period, there was an increase in cryptocurrency wallet activity below 1 BTC, meaning that individual investors began to actively buy bitcoins. The trend is similar now, but with some differences. Now, the reason for the panic is the fear of global inflation, and the value of Bitcoin is hovering around $48,000. Here is Wu’s quote on the matter, in which he shares his view of what is happening. The quote was published by Cointelegraph.

The last time individual investors were so active in buying off the bottom was during the crash on the back of news about COVID-19.

The pace of investor activity is visible in the chart below. It shows the cryptocurrency rate at the top and trading volumes of small buyers at the bottom.

Bitcoin accumulation by individual investors

However, the major cryptocurrency may not please us with new records by the end of this year. Kraken exchange CEO Jesse Powell said that BTC will not rise to $100,000 by the end of December, as many experts had previously predicted. That said, he considers the new “cryptozyma” – that is, the scenario of a gradual and prolonged market collapse – a fairly plausible scenario of developments. Here is a quote from the expert.

I think a lot of people see Bitcoin’s price under $40,000 as a buying opportunity. I personally was buying when we were down to almost $30k a few months ago. I think a lot of people are just waiting to get back into the market at “minimum” prices.

In other words, even if Wu's prediction doesn't come true and Bitcoin does go into a prolonged decline for at least a few months, it will be seen by most market players as a profitable opportunity to accumulate an asset. Consequently, many investors will have good conditions to buy cryptocurrencies at better prices. However, this is usually done by more experienced market players, who in addition can preserve the dollar value of their investment portfolio during a market collapse. As a reminder, this is achieved by converting the portfolio into stabelcoins - that is, coins with a link to the value of the dollar.

Kraken CEO Jesse Powell

That said, Bitcoin and the coin market as a whole are in good shape today. Last night, the former cryptocurrency showed a sharp rise, hitting a local ceiling of $49,500. Here’s a 15-minute chart of the cryptocurrency.

Bitcoin’s 15-minute chart


We think the coin market is really looking good right now. On top of that, the world is experiencing inflation, and cryptocurrencies are traditionally considered to be a good hedge against it. We would like to believe that this time will be no exception. That said, it is advisable to make financial decisions solely on your own, disregarding expert opinions. They may be wrong.


What do you think about it? Share your opinion in our Millionaire Crypto Chat. There, we’ll talk about other topics related to the world of digital assets.