On this day two years ago, Bitcoin suffered a huge drop, falling below $16,000. The crash was a moment of uncertainty for many investors, but for those who saw an opportunity, it has paid off handsomely. BTC historian Pete Rizzo took to X (formerly Twitter) to reflect on this event, saying, “Bitcoin crashing below $16k, exactly 2 years ago. Everyone who bought the dip is up +500%.”
✨ #Bitcoin crashing below $16k, exactly 2 years ago
Everyone who bought the dip is up +500% 🚀 pic.twitter.com/uu2zWigLU0
— The Bitcoin Historian (@pete_rizzo_) November 22, 2024
This November marked the second anniversary of FTX’s bankruptcy filing, which upended the industry and drove Bitcoin to new lows. However, in keeping with its cyclical character, cryptocurrency received much attention this year.
Bitcoin flirted with a run toward the $100,000 mark, reaching an all-time high. The largest digital asset traded up 2.34% to $99,050 at the time of writing, having previously reached a record $99,543. Since the first week of November, the cryptocurrency market has gained over $1 trillion.
Bitcoin up 500% since 2022 crash
As highlighted by Rizzo, Bitcoin has risen over 500% since its drop below $16,000 two years ago. The current optimism has obscured memories of a market crash in 2022, which coincided with the collapse of crypto platforms, including Sam Bankman-Fried’s FTX crypto exchange.
Bitcoin’s current trajectory could indicate that the cryptocurrency market has fully recovered from the events of 2022. With the bull market back in full swing, two years after FTX, crypto remains eternally transformed.
Bitcoin’s recent run near $100,000 has been buoyed by recent optimism in the crypto market. If today closes in green, Bitcoin will mark its fifth day of gains.
The most recent US developments included Securities and Exchange Commission Chair Gary Gensler’s decision to step down on Jan. 20. Gensler’s tenure was marked by a flurry of SEC crypto enforcement actions, which the industry anticipates will subside.
Bitcoin treasury company MicroStrategy plans to accelerate purchases of the coin, and the debut of options on U.S. Bitcoin exchange-traded funds also lifted sentiment this week. In recent weeks, a group of a dozen U.S. ETFs that invest in Bitcoin received a net inflow of more than $6.8 billion. The group’s total assets have exceeded $100 billion.
