Bitcoin saw a sharp decline on this day two years ago, dropping below $16,000. Many investors experienced uncertainty during the crash, but those who spotted an opportunity profited greatly. In his reflection on this incident, Bitcoin historian Pete Rizzo said on X (previously Twitter): “Exactly two years ago, Bitcoin crashed below $16,000. Everyone who purchased the dip has seen a +500% increase.
This November saw the second anniversary of FTX’s bankruptcy filing, which shook the market and sent Bitcoin to new lows. However, in line with its cyclical nature, Bitcoin gained a lot of attention this year.
Bitcoin reached an all-time high and briefly attempted a run toward the $100,000 barrier. At the time of writing, the biggest digital asset was up 2.34% to $99,050 after hitting a record $99,543. The cryptocurrency market has increased by more than $1 trillion during the first week of November.
Bitcoin Price Up 500% Since 2022
Rizzo pointed out that since its decline below $16,000 two years ago, Bitcoin has increased by more than 500%. The present confidence has clouded recollections of a 2022 market catastrophe that also saw the demise of cryptocurrency platforms, such as Sam Bankman-Fried’s FTX exchange.
The present course of Bitcoin may suggest that the cryptocurrency market has fully recovered from the 2022 occurrences. Two years after FTX, the bull market is back in full force, and cryptocurrency has not changed.
Recent excitement in the cryptocurrency sector has supported Bitcoin’s recent run of close to $100,000. Bitcoin’s fifth day of gains will occur if today ends on a positive note.
Gary Gensler’s resignation as chair of the Securities and Exchange Commission on January 20 was one of the most recent events in the United States. The sector expects the wave of SEC crypto enforcement actions that characterized Gensler’s tenure to slow down.
The introduction of options on U.S. Bitcoin exchange-traded funds this week further improved the mood, and Bitcoin treasury firm MicroStrategy intends to speed up purchases of the cryptocurrency.
Twelve U.S. exchange-traded funds (ETFs) that invest in Bitcoin had a net inflow of almost $6.8 billion in recent weeks. The group has more than $100 billion in total assets.
Conclusion
Two years after Bitcoin’s dramatic crash to under $16,000 during the collapse of FTX, the cryptocurrency has rebounded with a remarkable 500% gain, recently reaching a record high of $99,543 and nearing the psychological $100,000 milestone.
This recovery reflects the resilience and cyclical nature of Bitcoin, with increased institutional investment, ETF inflows totaling $6.8 billion, and improved market sentiment driving the rally.
Key developments, such as Gary Gensler’s upcoming resignation as SEC chair and the introduction of Bitcoin ETF options, have further bolstered optimism. The bull market’s return underscores Bitcoin’s enduring appeal and the cryptocurrency market’s ability to recover from past crises.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.