Bitcoin surged by 303% in the past year, breaking past its previous all-time high in Dec 2020. The growth was primarily spurred on by increased demand from the retail and institutional class amid mounting global inflation.
As per the 2020 CoinGecko yearly crypto report released on January 14, BTC has been the most resilient asset in the past 12 months. The digital coin has recently soared to all-time highs above $42K despite the Black Thursday crash wiping out more than $4K from its value back in March of 2020.
Bitcoin’s stellar performance in the past year marks the third great price rally in the coin’s 11-year history. The recovery from just below $4K in March to break the previous price record at $20K has fueled the narrative that bitcoin is “digital gold” rather than a speculative investment or cash alternative.
The CoinGecko report revealed that bitcoin’s rally in 2020 mimicked the 2016-2017 bull cycle that saw prices grow and peak at 4,527% returns. This time around, BTC rose by 303%, coming only second to Ether, which clocked up gains of 472%.
Bitcoin was the Best Performing Asset Class in 2020
By July 2020, BTC had hit $11K, marking a full recovery from the low that took place on March 12. According to an earlier report by Glassnode, 93% of bitcoin in circulation became profitable when the price entered the $11,000 range.
This remarkable recovery accelerated as economies stalled due to Covid-19 pandemic lockdowns, forcing investors to cash out of stock markets and into gold and cryptocurrency.
The bitcoin rally also gathered pace due to the 3rd halving buzz, which raised awareness of the crypto asset class among individuals looking for alternative investments.
According to the CoinGecko report, BTC managed to outperform gold and the Dow Jones stock market over the past year on the back of large-scale investment from institutions.
In fact, Bitcoin beat every major asset class, including crude oil, the Nasdaq composite, and the US Dollar index, to emerge as the best performing asset class in 2020.
This incredible resilience in the face of a struggling global economy has established BTC as a legitimate store of value and a viable hedging strategy for investors.
Retail Appetite For BTC is Growing
Even as institutional involvement in the BTC market becomes more commonplace, retail demand for the flagship crypto is also increasing.
Case in point, several bitcoin-centric exchange-traded funds (ETFs) have launched in the past twelve months, pointing to a marked rise in appetite for BTC among retail investors.
According to the latest data from TrackInsight, an ETF data provider, over $121 million flowed into BTC and crypto ETFs in December of last year.