Leading Cryptocurrency bitcoin Bitcoin/US dollar 2021 was a breakthrough year with record highs. Recent events have brought down the entire cryptocurrency market. Here’s a look at how an investment made a year ago would pay off now.
What happened: Bitcoin and other cryptocurrencies have had a strong 2021 with more cryptocurrency trading platforms and more ways for investors to access the sector.
Cryptocurrencies such as Ethereum Ether/US dollar as well as Solana Sol/US dollar received from non-fungible token use cases.
Bitcoin has moved strongly in 2021 thanks to the number of companies that have added cryptocurrency to their balance sheet. Among the highlights was the electric vehicle leader Tesla Inc TSLA adding bitcoins throughout the year. The company will later sell most of its assets.
El Salvador also became the first country to make bitcoin legal tender, raising the hope that other countries will accept and follow suit.
It was a great 2021 for Bitcoin as the cryptocurrency hit all-time highs in November.
Bitcoin started trading in 2021 at $28,994.01 and ended the year at $46,306.45. The trading range for the year meant that many people who bought bitcoin in early 2021 ended up in a profitable position if they sold or held until the end of the year.
In 2022, companies like Celsius and more recently FTX The bankruptcy filing has hurt the crypto market as a whole and pushed the price of Bitcoin below $20,000, causing many 2021 investors to drown in their investments.
Related link: How to buy bitcoin
Investing $1,000 in BTC: Bitcoin was trading at $65,495.18 a year ago today, close to its all-time high of around $69,000.
By investing $1,000 in Bitcoin on November 14, 2021, you could buy 0.0153 BTC. That same $1,000 investment would now be worth $251.11 today, based on Bitcoin’s price of $16,412.18 at the time of writing.
This means a 74.9% decline in bitcoin over the past year.
Many hope for the price of bitcoin in the future, but others point to the crash of FTX as a major event that could hurt the cryptocurrency market for years to come.
This hypothetical investment showed that investing in cryptocurrencies can be volatile and investors should be aware of the risks involved.
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