Coinfomania: Where blockchain and cryptos live.

Someone Bet BTC Won’t Be Above $3850 on October 1 2020. He Lost.

At the depth of a Bitcoin (BTC) price drop in March, two Bitcoiners placed a 50 million SATs multi-sig bet (approx. $1500 at the time).

The argument was that the price of Bitcoin would go below $3850, and this was after the leading cryptocurrency lost more than 50% within two days, falling to a yearly low of around $4,400.

Fears and uncertainty that the impending coronavirus pandemic would take its toll on the global economy forced the financial markets, including the crypto markets, to drop sharply.

Fast forward to six months later, the price of Bitcoin is above $10,000. Keep it Simple Bitcoin podcast host and owner of the Twitter handle with the name “AMERICANHODL” has now claimed the 50 million sats (0.5 BTC) pot worth ($5,245).

BTC rebounded sharply since the March dip

Although a bet for a Bitcoin price below $3850 may have looked likely at the bottom of that market sell-off in Match, the leading cryptocurrency once again showed its asymmetric growth potential, gaining far more than it lost in the coming months.

Bitcoin Price YTD

Bitcoin’s Price Performance Year-T0-Date (YTD) (Source: CoinMarketCap)

Historical charts show that it took less than four weeks after the sell-off for the price of Bitcoin to recover to its value at the start of the year. Since then, market growth has been in an upward trajectory, buoyed by the Bitcoin halving, and massive investment by a publicly-traded company, MicroStrategy. Bitcoin is up 46.40% YTD, outperforming most major assets and indexes.

The price of BTC has also held up well in the wake of more tumultuous market news including the $200 million KuCoin hack in late September, and more recently the indictment of BitMEX operators by U.S authorities.

At the time of writing, Bitcoin had a market cap just shy of $195 billion and was trading for $10,529.

 

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