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.
my cousin lost 15k eur to onecoin back in 2017. glad doj finally moved on the indictments but ruja ignatova is still out there somewhere
the TSX listing The Bitcoin Fund was a bigger deal than people realized at the time. that was the institutional on-ramp starting to take shape
^ exactly. everyone was focused on the $6.9k btc price while ignoring the structural shift happening with regulated products
80% of central banks researching cbdc in 2020 and people still acted surprised when they started launching them. the writing was on the wall