The Rapid Rise Of Cryptocurrency And What It Means For Traditional Investing

David Streltsoff
3 min readApr 12, 2021


In March 2021, Bitcoin, the leading cryptocurrency by market cap hit an impressive all-time high of $61,800.

A month later, the glorious streak continues with the closing price of one Bitcoin being $59, 833.71 on April 11th, 2021.


These high prices have set tongues wagging and people talking about the rapid rise of cryptocurrency.

However, did you know that it wasn’t always like this? In fact, Bitcoin, the very first cryptocurrency started trading at a measly $0.08 per coin back in July 2010.

So, what exactly is behind this seemingly quick rise of cryptocurrency? Let’s explore.

Cryptocurrencies’ troubled history

It often happens that when the markets are enjoying a high people tend to forget the difficult history of an asset class. The same is true with cryptocurrencies.

In Bitcoin’s 12-year history, for example, it hasn’t always had favorable growth. In fact, the digital currency only surpassed the $50,000 mark on February 17, 2021.

In 2018, Bitcoin started the year trading around $13,500. Before 2018 would end, however, the price of one BTC would have dropped to a shocking $3,400. Ethereum wasn’t doing too well either having fallen from $1,300 to a paltry $91.

If there are lessons to be drawn from this history it is that no one can anticipate what will happen with cryptocurrencies. One moment it may seem that the end has come and within a few months, the price can climb to dizzying heights as we’re seeing at the moment.

In December 2020, Bitcoin was being sold for just over $23,000 and hardly two months later the currency was fetching more than double that price.

Coronavirus pandemic: a boon in disguise?

In order to explain the rise of cryptocurrency in the last 12 months, we have to look at what’s happening in the world.

While the coronavirus has devastated world economies with researchers in the United States talking of a recession, it has been an apparent boon for cryptocurrencies.

With investors seeking hedging against inflation, greater transparency of their investments, and security, they moved in droves to invest in cryptocurrency particularly BTC. This demand for the scarce asset led to the price rising exponentially.

On March 7, 2020, one BTC was trading for $9,160.39 and a year later, on March 7, 2021, the price was a staggering $52,405.02.

To add on, in May of 2020, Bitcoin was “halved” which made it extremely difficult for more BTC to be produced. The fact that there are only 12 more halvings left before BTC is depleted forever has also contributed immensely to the augmenting of the price of BTC.

And what does cryptocurrency, especially BTC mean for traditional investing? IT entrepreneur Rick Falkvinge may have summed it up prophetically, “Bitcoin will do to banks what email did to the postal industry.”

Only time will tell if the rise of cryptocurrency will affect traditional investing in the long term.

To read more about how technology is disrupting the investment landscape, check out my blog Bridging The Gap In Wealth Management with Wealthtech.