Cryptocurrency started a bull market at the height of the 2020 pandemic. Most people believe that when most parts of the world enter a lockdown state, the financial market will suffer huge losses, but this is not the case. Although in the early stages of the pandemic, various markets experienced price drops. Then, the market began to pick up. The stock and cryptocurrency markets have even surpassed all points before the crash.
Related Reading | Crypto analyst pushes Cardano (ADA) path to $4
The recovery is attributed in different ways to the government providing relief to citizens unable to work in the form of stimulus checks. These are to allow those who cannot afford to stay at home and meet their basic needs. Governments have even announced a nationwide freeze on rents and mortgages. To keep everyone at home.
Most people use these checks for food. Because in fact, these checks are for people whose income is not enough to get them through the lockdown period. Others who can afford either have invested some or all of the stimulus checks. Some of these investments are cryptocurrencies.
Related Reading | U.S. rapper Tyga will launch OnlyFans crypto competitor
Incentive checks are basically regarded as “free money” by some people. They will dispose of money as they wish. Although some people regret the negative impact of printing so much money in such a short period of time, others see this as an opportunity. This “free money” entering the market is likely to have played a role in the huge bull market that followed. The bull market hit a record high.
But this raises a question; if a person invests in a $1,200 stimulus check issued by the US government in April 2020, what is the amount of the investor’s investment in various assets? This report will answer these questions and put the numbers in the right perspective.
What does a $1,200 crypto investment mean for net investors
First, we will study Bitcoin. If $1,200 were invested in Bitcoin in April 2020, the investment would be worth about $9,000 based on the current price in August. Since then, the price of BTC has risen by more than 600%.
Next is Ethereum. By depositing a $1,200 stimulus check into Ethereum in 2020, investors will have more than $22,500 at this time. Given that the price of ETH has outperformed the price of BTC in the past year, this is even higher than the price of BTC.
In addition to Ethereum, other altcoins have also performed well in the past year. These include DOGE, ADA, SOL and HEX. The USD 1,200 invested in DOGE is now worth more than USD 200,000. The $1,200 investment in ADA will be worth more than $90,000. SOL is currently worth more than 120,000 USD. Last but not least, by 2021, the US$1,200 investment in HEX will be worth more than US$300,000.
Crypto market has grown over 1,000% since April 2020 | Source: Crypto Total Market Cap from TradingView.com
These figures show that the cryptocurrency market can bring absolutely huge returns. Although this largely depends on the investor’s ability to maintain every peak and trough before the asset reaches this point.
Featured image from Freekpik, chart from TradingView.com