This was by far the biggest test of bitcoin’s core principles to date, in which we saw an immediate and absolute rejection from lows of $3,800 (confirming the Dec 10th 2018 bottom of $3,200) and a steady rise of almost 100% in the following two weeks.
The entire world flocked to cash on March 12th, leaving virtually every major asset class bleeding red in it’s wake. Bitcoin was hit the hardest by far. Before the music finally stopped, bitcoin’s price dropped a historically significant amount of almost 58% in two day’s time.
While fear (and thus the need for cash,) grows more palpable each day, most asset classes have regained a significant amount of the lost value, but bitcoin has since rallied back to regain 81% of the loss within two weeks, showing that in spite of it being only 11 years old at this point, it rivals much more traditional asset classes and even emboldens it’s once threatened “store of value” narrative.
People out here talking about “final capitulation” while we almost went to zero due to cascading liquidations overnight.— DonAlt (@CryptoDonAlt) March 13, 2020
If there ever was a final capitulation yesterday was it.
The ballsy fuckers that didn’t sell yesterday aren’t gonna capitulate, they’ll go down with the ship.
Not only was this sudden, merciless movement basically the bitcoin ecosystem’s version of Colon-Blow for weak hands, but it also stands as the most significant test on the books for the bitcoin network’s longevity, as the value collapsed hard approximately 62 days before the halving event, which will show the block reward reduced from 12.5BTC to 6.25BTC, miners have more incentive than ever to capitulate, turn off their machines and just go home.
In spite of this the bitcoin hashrate currently sits at 111.90E, it even posted a slight gain over it’s March 11th hashrate of 110.87E, and throughout all the carnage, it never dipped below the Dec 24th 2019 local low of 81.79E
A strong hashrate ensures not only the security of the bitcoin network, but also keeps transaction fees low, so users can easily transfer value while preserving bitcoin’s principles.
While the bitcoin price has almost fully recovered since the carnage of March 12th and 13th (which was perfectly a Friday the 13th,) the hashrate has actually posted a gain. This survival of bitcoin’s greatest historical challenge yet shows that we’re not only getting up again after being knocked down (thanks, chumbawumba,) but the “store of value” narrative is stronger than ever.