Explaining Bitcoin’s Rise From $6k To $56k In A Single Year

One year ago — on March 12th, 2020 — bitcoin was trading at $6,131 per coin. It had been valued at more than $12,000 in June 2019. But markets everywhere were in a bit of a panic last March, and stocks were trading near the lowest level of the year. BTC sold off during the initial crash, just like almost everything else.

But it was pretty clear to me this would ultimately prove to be a great BTC buying opportunity. Because I knew how the Federal government and Federal Reserve were going to react. They were going to print and spend gobs of money, which would almost certainly drive further adoption of bitcoin. 

Here’s what I wrote last March in “Bitcoin Was Made For Times Like These,” discussing the $6 trillion stimulus package. Bitcoin was trading at around $6,642 at the time.

I don’t see anything that can stop the money-printing tsunami that is coming. There’s too much debt in the system, too little savings and too little income with the economy being basically shuttered over COVID-19…

Bitcoin was created as a response to reckless government spending, bailouts and money printing. Despite incredible odds against the experiment working, it caught on.

Bitcoin’s purpose is to serve as a decentralized alternative to the existing fiat money system. I believe we’re about to see exactly why this is an important and worthy goal.

I finished that article by citing something I wrote in January 2019.

Bitcoin is in a fantastic place today. The world simply doesn’t understand what it is yet. It’s a monetary revolution in the making, and most people are still eyeing it like it’s a strange, speculative toy.

The general public will come to understand bitcoin with time and, unfortunately, this will accelerate as more financial crises arrive to sharpen its attention.

A Spike In Realization, Then Price

The broader public is finally starting to understand the bitcoin story. Why it was created. What it is trying to accomplish. And the implications all of that holds. 

They are beginning to realize this due to the bloated state of our financial system. The debt, money printing, unfunded liabilities, etc. It has become too glaring to ignore.  This is ultimately what’s driving bitcoin — and the broader crypto market — higher. 

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