2020 was a pivotal year for Bitcoin, marked by extreme volatility early on, followed by a strong and sustained rally towards year-end. 

In March, Bitcoin’s price briefly crashed to below $4,000 amidst the broader COVID-19 pandemic-induced market turmoil. However, it quickly recovered. May saw the third Bitcoin halving, reducing the block reward to 6.25 BTC.

A major narrative shift occurred as prominent institutional investors and corporations, such as MicroStrategy and Square, began allocating significant capital to Bitcoin, viewing it as a hedge against inflation and a store of value in an era of unprecedented monetary stimulus. 

PayPal also announced it would allow users to buy, sell, and hold Bitcoin, further boosting mainstream adoption and legitimacy. Bitcoin ended the year on a strong uptrend, surpassing its 2017 all-time high and trading around $29,000.

Bitcoin Milestones in 2020

• March: “Black Thursday” – Bitcoin’s price crashed significantly along with global markets due to the COVID-19 pandemic.
• May 11: The third Bitcoin halving occurred, reducing block rewards to 6.25 BTC.
• August/October: MicroStrategy announced its first significant Bitcoin purchases, starting a trend of corporate treasury allocations to BTC.
• October: PayPal announced it would enable cryptocurrency buying, selling, and holding on its platform.
• December: Bitcoin surpassed its 2017 all-time high, rallying towards $29,000 by year-end.