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If you invested $ 1,000 in Bitcoin a year ago, here’s how much you would have now
Investors who owned shares in the past year have generally made big gains. In fact, the total return on the SPDR S&P 500 (NYSE: SPY) in the last 12 months is 74.3%. But there is no doubt that some investments have performed better than others along the way. The Big Bitcoin Race: No matter how strong the stock market has been since it hit rock bottom on March 23, 2020, Bitcoin (CRYPTO: BTC) has been much stronger. After a wild ride that took Bitcoin prices to almost $ 20,000 in late 2017, the previous Bitcoin bubble burst in 2018 and the cryptocurrency ended the year with a 72.6% drop. Bitcoin came back to life in 2019, however, ending the year up 87.2% and costing around $ 7,200. Several factors led to an increase in Bitcoin purchases in 2020. First, investors concerned about the potential long-term damage that trillions of dollars in federal stimulus could cause to the dollar’s value flooded Bitcoin as a potential safe haven. Second, younger Americans who received three rounds of direct stimulus payments dumped a significant portion of that money into investments, including Bitcoin. Mizuho recently estimated that the most recent round of $ 1,400 stimulus payments could contribute to around $ 24 billion in buying Bitcoins. After starting 2020 at around $ 7,200, Bitcoin prices reached $ 10,000 in mid-February. See also: How to buy Bitcoin (BTC) In early March, the volatile cryptocurrency dropped back to around $ 8,600, after news of the coronavirus spreading in China raised concerns about a pandemic in the United States. When the stock market hit bottom on March 23, Bitcoin investors were also feeling the pain. Investors who bought Bitcoin as a flight safety COVID-19 operation were down with Bitcoin costing around $ 5,800 at the time. However, once government stimulus payments began to flow, Bitcoin regained its arrogance. As of May 31, Bitcoin prices have returned to above $ 10,000, and they have not traded below $ 10,000 since September 2020. Related link: If you invested $ 10,000 in Ford shares a year ago, here’s how much you would now have Bitcoin in 2021, in addition: Bitcoin reached new highs above $ 20,000 in December 2020, almost exactly three years after its last new high. The cryptocurrency ended up reaching $ 61,643 in the past few weeks, more than tripling its 2017 record. In recent days, the cryptocurrency has retreated from its historic highs, falling again to around $ 55,500 at the time of publication. Still, Bitcoin investors who bought a year ago and held on have generated a massive return on their investment. In fact, $ 1,000 in Bitcoin purchased on March 23, 2020 would be worth about $ 8,816 today. Given the exponential rise in Bitcoin prices over the past year, along with the loss of support for stimulus payment in the coming months, some investors are understandably concerned about a potential repeat of the 2018 settlement. Bitcoin experienced three declines of more than 80% in the past decade, and a similar settlement in 2021 could bring its price back down to around $ 12,000. See more from BenzingaClick here for Benzinga’Stimmy Check options trading and the stock market: will the retail trade frenzy continue? The money app is giving M in Bitcoin: what you need to know © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.