$BTC

In 2020, Bitcoin experienced significant transformations that marked a turning point in its history. The year began with the usual price volatility, but in the second half of the year, prices began to rise noticeably, increasing from around $7,000 in January to over $28,000 in December. This surge can be attributed to several factors, the most important being the COVID-19 pandemic, which drove many investors to seek alternative assets to protect their wealth from inflation and economic instability.

One of the most notable events in 2020 was the third Halving event in May, which reduced the block mining reward from 12.5 to 6.25 Bitcoins, thereby decreasing the new supply and contributing to increased buying pressure on the currency. Additionally, the interest of major financial institutions began to manifest more clearly, as companies like MicroStrategy and Square announced massive investments in Bitcoin, bolstering market confidence.

The decline in trust in fiat currencies and the expansionary monetary policies of central banks also played a role in pushing individuals and institutions towards Bitcoin as a store of value. Overall, 2020 served as a launchpad for Bitcoin towards widespread institutional recognition and its transformation into a globally significant financial instrument.