The second week of April 2020 found the cryptocurrency world navigating an unusual intersection of forces. Global central banks were printing money at an unprecedented rate to combat the economic devastation of COVID-19, regulators were tightening their grip on fraudulent schemes, and institutional investors were quietly laying the groundwork for what would become a historic wave of adoption. Bitcoin traded at $6,971 on April 12, up 2.73% for the week, while the total crypto market cap sat at $198.5 billion — still far below pre-crash levels but showing signs of life.
TL;DR
- Federal Reserve stimulus measures during COVID-19 were cited as a driver of Bitcoin price recovery, as the cheapening of the U.S. dollar renewed interest in hard assets
- The DOJ moved to unseal indictments in the OneCoin fraud case, one of the largest cryptocurrency Ponzi schemes in history
- Japans new cryptocurrency regulations took effect in April 2020, tightening oversight of exchanges
- The Toronto Stock Exchange listed The Bitcoin Fund, signaling growing institutional acceptance in North America
- 80% of central banks globally were actively researching Central Bank Digital Currencies (CBDCs), according to a Bank for International Settlements report
Federal Reserve Action and the Bitcoin Price Response
As the COVID-19 pandemic shut down economies worldwide, the U.S. Federal Reserve embarked on an aggressive monetary expansion campaign. Interest rates were slashed to near zero, and quantitative easing programs were expanded dramatically. For Bitcoin proponents, this was exactly the scenario the cryptocurrency was designed for — a finite-supply asset in a world of infinite money printing.
The narrative gained traction throughout April 2020. Analysts noted that the Feds actions were effectively pumping up the Bitcoin price by cheapening the value of the dollar. With traditional markets in turmoil and negative real yields becoming the norm, investors began looking at Bitcoin as a potential hedge against currency debasement. The cryptocurrency had already survived the March 2020 crash — dubbed Black Thursday — when BTC briefly fell below $4,000 before recovering strongly.
By mid-April, Bitcoin was trading steadily above $6,900, with weekly gains of 2.73%. Ethereum performed even better, gaining 12.35% to reach $161.14. The total crypto market capitalization of $198.5 billion represented a 4.18% increase from the prior week, with 77 of the top 100 cryptocurrencies posting gains.
OneCoin: Justice Moves Slowly but Moves
On the enforcement side, April 2020 saw significant developments in one of the crypto worlds most notorious fraud cases. The OneCoin Ponzi scheme, estimated to have defrauded investors of approximately $4 billion worldwide, returned to the headlines as the U.S. Department of Justice moved to unseal indictments related to the case.
Gilbert Armentas case, which had seen no filings since March 2018, was suddenly back in motion. On April 29, 2020, the DOJ requested that Armentas indictment be unsealed — a signal that federal prosecutors were continuing to pursue individuals connected to the sprawling fraud. Konstantin Ignatov, who had led OneCoin after the disappearance of his sister Ruja Ignatova (the so-called Cryptoqueen), had already been arrested in March 2019 at Los Angeles International Airport.
The OneCoin case served as a stark reminder of why regulatory frameworks were essential. Unlike legitimate cryptocurrencies operating on public blockchains, OneCoin had no actual blockchain — it was a centralized Ponzi scheme disguised as innovation. The prosecutions reinforced the message that while crypto itself was not inherently fraudulent, bad actors would face consequences.
Japan Tightens Crypto Regulation
In April 2020, Japan implemented new cryptocurrency regulations designed to strengthen oversight of the digital asset industry. The updated framework placed stricter requirements on cryptocurrency exchanges operating in the country, including enhanced anti-money laundering (AML) and know-your-customer (KYC) procedures.
Japan had been at the forefront of crypto regulation since becoming one of the first major economies to formally recognize Bitcoin as legal tender in 2017. However, the high-profile hacks of Coincheck in January 2018 — which saw approximately $530 million in NEM tokens stolen — and other incidents had prompted regulators to take a more aggressive stance. The April 2020 regulations represented a continuation of this tightening trend.
Institutional Infrastructure Expands
Beyond enforcement and rulemaking, April 2020 also saw meaningful infrastructure developments that would pave the way for institutional adoption. In Canada, the Toronto Stock Exchange — the nations largest stock exchange — listed The Bitcoin Fund, providing investors with a regulated, exchange-traded vehicle for Bitcoin exposure.
This listing was significant because it offered traditional investors a way to gain Bitcoin exposure through familiar brokerage accounts, without the operational complexity of self-custody. The Bitcoin Fund, managed by 3iQ Corp, had received approval from the Ontario Securities Commission after a lengthy regulatory process.
Meanwhile, the Bank for International Settlements reported that 80% of central banks worldwide were actively researching Central Bank Digital Currencies. While most projects were still in early research phases, the level of institutional interest suggested that the question was no longer whether CBDCs would emerge, but when and in what form. China was already piloting its digital yuan in select cities, adding urgency to the global discussion.
Why This Matters
April 2020 was a regulatory inflection point. The COVID-19 economic crisis simultaneously validated Bitcoins core thesis as a hedge against monetary expansion while accelerating institutional infrastructure development. The enforcement actions against OneCoin demonstrated that regulators were serious about cleaning up the industry, while new frameworks in Japan and product listings on traditional exchanges showed that the legitimate crypto ecosystem was maturing rapidly. These developments laid the regulatory and institutional groundwork that would enable the massive growth that followed in late 2020 and beyond.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
BTC at $6971 with stimulus checks about to hit bank accounts. that was the easiest macro trade of the decade and most people bought toilet paper instead
the Toronto Stock Exchange listing a bitcoin fund the same month was the institutional signal nobody tracked. retail was panic selling and TradFi was quietly building the on-ramp
stimmy checks hitting coinbase in april 2020 was the most bullish thing the US government ever did for crypto without realizing it. btc at 6971 was a gift
onecoin was such an obvious scam from day one, cant believe it took doj this long to unseal indictments. how many people lost everything
bro 80% of central banks researching cbDCs back in 2020 and people still act surprised when they announce pilots lol
80% researching and somehow most cbdc pilots are still coming soon 6 years later. only china actually shipped one
6 years later and cbdc pilots are still getting announced. the technology is ready, the political will isnt
OneCoin indictments finally getting unsealed and ruja still missing. that scam pulled in 4 billion and the mastermind just vanished. wild that it took years
Mila J. 80% of central banks researching CBDCs in 2020 and basically nothing shipped. china rolled out e-CNY for pilots and everyone else is still writing whitepapers six years later
oneCoin victims waited 4 years for DOJ indictments while ruja was already living on a yacht somewhere. justice system moved at glacier speed
Prijesh S. she literally disappeared in 2017 and the indictment took until 2020. the money is long gone through dubai shell companies
The $6,971 price feels like a steal in hindsight. Stimulus checks flowing into btc was the trade nobody talks about enough.
first round of stimulus checks hitting in april 2020 was basically free money for btc holders. coinbase signups spiked like crazy that month
stimulus checks to btc was the trade. knew three people who put their entire $1200 into eth at $150 and never looked back
stimmy_stacker 1200 into ETH at 150 was a 20x at peak. best ROI of any stimulus cohort by a mile
Lasse T. knew two guys who put their full 1200 into BTC at 7K. never sold a single sat. generational wealth from toilet paper money
btc at 6971 in april 2020 was the last great entry before the run. stimulus checks flowing into coinbase that month was the signal nobody tracked
onecoin victims waited years for those indictments. ruja ignatova is still missing and the money is gone
Olga P. ruja literally vanished off the face of the earth. onecoin shows how far a fake accent and some stage presence gets you
onecoin was a 4 billion dollar scam and ruja vanished in 2017. doj unsealing indictments in 2020 was 3 years too late. that money is in dubai real estate
stimmy checks into ETH at 150 was the greatest wealth transfer in retail history. some of those people are still up 30x
stimmy checks into ETH at 150 was the greatest retail trade of the decade. some of those people are still up 20x
stimmy checks directly into ETH at $150 was generational wealth for anyone who pulled the trigger. most people bought TVs instead
80% of central banks researching CBDCs in 2020 and 6 years later china is the only one that shipped. everyone else is still writing discussion papers
80% of central banks researching cbdc in 2020 and 6 years later only china actually shipped one. everyone else is still writing position papers