Leading cryptocurrency Bitcoin (CRYPTO: BTC) had a breakout year in 2021, hitting all-time highs. Recent events have sent the entire cryptocurrency market down. Here’s a look at how an investment one year ago would be doing now.
What Happened: Bitcoin and other cryptocurrencies enjoyed a strong 2021 with the number of cryptocurrency trading platforms increasing and investors having more ways to get exposure to the sector.
Cryptocurrencies such as Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) gained on their use cases for non-fungible tokens.
Bitcoin enjoyed a strong move in 2021 thanks to the number of companies adding the crypto to their balance sheet. Among the highlights was electric vehicle leader Tesla Inc (NASDAQ:TSLA) adding Bitcoin during the year. The company would later sell the majority of its holdings.
El Salvador also became the first country to make Bitcoin legal tender, increasing hope that more countries would adopt and follow suit.
It was a great 2021 for Bitcoin with the cryptocurrency hitting all-time highs in November.
Bitcoin opened 2021 trading at $28,994.01 and ended the year trading 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 on until the end of the year.
In 2022, companies such as Celsius and most recently FTX filing for bankruptcy have hurt the overall cryptocurrency market and sent the price of Bitcoin under $20,000, putting many 2021 investors underwater on their investment.
Related Link: How To Buy Bitcoin
Investing $1,000 in BTC: Bitcoin traded at a high of $65,495.18 one year ago today, near its all-time high price of around $69,000.
A $1,000 investment in Bitcoin on Nov. 14, 2021, could have purchased 0.0153 BTC. That same $1,000 investment would now be worth $251.11 today, based on a price of $16,412.18 for Bitcoin at the time of writing.
This marks a decline of 74.9% for Bitcoin in the last year.
Many have hope for the price of Bitcoin in the future, but others are pointing to the FTX meltdown as being a major event that could hurt the cryptocurrency market for years to come.
This hypothetical investment showed investing in cryptocurrency can be volatile and investors should consider the risks involved.
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Photo: Creativan via Shutterstock
