Crypto had started to boil in 2020 at the height of the pandemic. Most believed that financial markets would suffer greatly when most of the world crashed, but this would not be the case. Although the various markets had experienced price drops at the beginning of the pandemic. Then the markets began to recover. Both stocks and cryptocurrency markets had rallied even beyond their various points before the crash.
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The recovery was attributed at various points to governments providing relief to citizens unable to work in the form of stimulus checks. These were to allow people who could not afford it to stay home and also meet their basic needs. Governments even announced rent and mortgage freezes across the country. In an attempt to keep everyone in one house.
Most spent these checks on food. Because in reality, the checks were intended for people whose income was not enough to go through a closing. Others, although they could afford it, had invested some or all of their stimulus checks. Some of these investments were in cryptocurrencies.
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Stimulus checks were basically seen by some as “free money.” Money that they would do what they wanted with. While some lamented the negative effects of printing so much money in such a short time, others saw this as an opportunity. This “free money” that entered the market likely played a role in the tremendous bull run that would follow. A bull run that saw new all-time highs across the market.
But this leads to the question; If a person had invested their $ 1,200 stimulus checks issued by the US government in April 2020, how much would that investor have in various assets? This report will answer those questions, putting the numbers in perspective.
What $ 1,200 cryptocurrency investment would net investors be?
To start with, we will look at bitcoin. If $ 1,200 were invested in bitcoin in April 2020, at current August prices, that investment would be worth around $ 9,000. The price of BTC has risen more than 600% since then.
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The next one would be Ethereum. By putting a $ 1,200 stimulus check into Ethereum in 2020, at this point the investor would have more than $ 22,500. This is an even higher price than BTC given that the price of ETH has exceeded the price of BTC for the past year.
Other altcoins besides Ethereum have done very well in the past year as well. These include DOGE, ADA, SOL, and HEX. $ 1,200 positions at DOGE would be worth more than $ 200,000 now. An investment ADA of $ 1,200 would be worth more than $ 90,000. SOL would currently be worth more than $ 120,000. And last but not least, a $ 1,200 investment in HEX would be worth more than $ 300,000 in 2021.
The crypto market has grown more than 1,000% since April 2020 | Source: Crypto Total Market Cap from TradingView.com
These numbers show the absolutely massive returns that the cryptocurrency market can bring. Although this is highly dependent on the investor’s ability to hold onto each peak and trough until the assets reach this point.
Featured Image from Freekpik, Chart from TradingView.com