Introduction
For many, 2020 was a challenging year—one few would wish to relive. However, reflecting on its pivotal moments offers valuable insights. As the year drew to a close, the cryptocurrency industry witnessed unprecedented growth and upheaval. This article, the first in a four-part series, revisits major developments from January to March 2020, highlighting Bitcoin’s resilience, Ethereum’s milestones, and the impact of COVID-19 on markets.
Bitcoin Takes Center Stage
Bitcoin emerged as 2020’s standout asset, fueled by narratives like “digital gold” and “inflation hedge.” Institutional investors, including Paul Tudor Jones and Stan Drunkenmiller, embraced BTC, driving its price to all-time highs. Public companies like MicroStrategy, Mass Mutual, and Square also added Bitcoin to their balance sheets—a first in corporate history.
Meanwhile, Ethereum’s community thrived with the rise of DeFi (Decentralized Finance), unlocking new economic models. Despite this, Ethereum’s breakthroughs remained largely community-centric compared to Bitcoin’s mainstream adoption.
Key Events: January–March 2020
1. Bitcoin’s Volatility Before COVID-19
- January–February: BTC opened the year at $7,200**, peaked above **$10,000, then corrected to $8,600. Market sentiment: cautious optimism.
2. Bitcoin Hits 500 Million Transactions (February 5)
The Bitcoin blockchain processed its 500 millionth transaction in block:
00000000000000000001145bf2e7cb7f04df55feaf3b55d9f6511522bbbf333fJameson Lopp, Casa founder, celebrated the milestone on Twitter:
“Today, Bitcoin confirmed its 500 millionth on-chain transaction.”
3. COVID-19 Triggers Market Crash (Mid-March)
- March 9–16: Traditional markets collapsed, dragging cryptocurrencies down.
- March 12 (“Black Thursday”): BTC plunged to $4,100 as panic selling surged.
- Exchange volumes spiked to historic highs as investors fled.
👉 Bitcoin’s recovery strategies post-crash
Ethereum’s Record-Breaking Year
1. Network Utilization Peaks
- Ethereum’s block space demand neared 100%, driven by DeFi protocols like Uniswap, Aave, and Compound.
- Scalability became urgent, paving the way for Optimistic Rollups and Ethereum 2.0.
2. Hash Rate Hits All-Time High
- Despite the impending shift to Proof-of-Stake (PoS), mining activity surged.
- Hash rate peaked at 271 TH/s, surpassing 2018’s record (240 TH/s).
3. Ethereum 2.0 Launches “Phase 0”
- The upgrade’s smooth rollout boosted confidence in Ethereum’s PoS transition.
Notable Developments
1. Bitcoin Halving Prep (January–March)
- Anticipation of the May 2020 halving drove price speculation.
- Mining firms like Bitmain faced profitability struggles, leading to layoffs.
2. Crypto Advocates Exit U.S. Presidential Race
- Andrew Yang (pro-crypto) and Tulsi Gabbard (ETH investor) withdrew from the election.
3. Akon City Approved in Senegal (January 13)
- Musician Akon secured approval for a crypto-powered utopia using his Akoin token.
- The $2B project aims for completion by 2025, though skepticism remains.
FAQs
Q1: Why did Bitcoin crash in March 2020?
A: The COVID-19 pandemic triggered a global liquidity crisis, causing a sell-off across traditional and crypto markets.
Q2: What was Ethereum’s biggest achievement in early 2020?
A: Record-high network usage and the Ethereum 2.0 Phase 0 launch were pivotal.
Q3: How did institutions influence Bitcoin’s 2020 rally?
A: Paul Tudor Jones, MicroStrategy, and others legitimized BTC as a corporate treasury asset.
👉 How Ethereum 2.0 changes the game
Conclusion
The first quarter of 2020 set the tone for a transformative year in crypto. From Bitcoin’s resilience to Ethereum’s innovation, these months laid the groundwork for the industry’s explosive growth.
This article was inspired by Decrypt’s original reporting.