Main cryptocurrency Bitcoin BTC/USD had an exceptional year in 2021, reaching all-time highs. Recent events have caused the entire cryptocurrency market to plummet. Here is an overview of how an investment a year ago would do now.
What happened: Bitcoin and other cryptocurrencies have had a strong 2021 with the number of cryptocurrency trading platforms increasing and investors having more ways to gain exposure to the sector.
Cryptocurrencies such as Ethereum ETH/USD and Solana SOL/USD won on their use cases for non-fungible tokens.
Bitcoin has seen strong growth in 2021 thanks to the number of companies adding crypto to their balance sheets. Among the highlights was the electric vehicle leader Tesla Inc. TSLA adding Bitcoin over the year. The company will later sell the majority of its holdings.
El Salvador too became the first country to make Bitcoin legal tender, raising hopes that more countries would adopt and follow this example.
It’s been a great 2021 for Bitcoin with the cryptocurrency hitting all-time highs in November.
Bitcoin opened 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 at the start of 2021 ended up with a profitable position if they sold or held until the end of the year.
In 2022, companies such as Celsius and more recently FTX bankruptcy filing hurt the overall cryptocurrency market and sent the price of Bitcoin below $20,000, putting many 2021 investors underwater on their investment.
Related link: How to buy bitcoins
Invest $1,000 in BTC: Bitcoin traded at a high of $65,495.18 a year ago today, near its all-time high of around $69,000.
A $1,000 investment in Bitcoin on November 14, 2021 could have bought 0.0153 BTC. That same $1,000 investment would now be worth $251.11 today, based on a Bitcoin price of $16,412.18 at the time of writing.
This marks a 74.9% decline for Bitcoin over the past year.
Many have hope for bitcoin price in the future, but others point to the collapse of FTX as a major event that could harm the cryptocurrency market for years to come.
This hypothetical investment showed that investing in cryptocurrency can be volatile and investors should consider the risks involved.
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