Bitcoin stabilizes after selloff, resistance seen around $ 56K


Benzinga

If you invested $ 1,000 in Bitcoin a year ago, this is what you would have now

Investors who have owned stocks in the last year have generally seen big returns. In fact, the total return on the SPDR S&P 500 (NYSE: SPY) for the past 12 months is 74.3%. But there is no question that some investments performed better than others along the way. Big Bitcoin Run – As strong as the stock market has been since it bottomed out on March 23, 2020, Bitcoin (CRYPTO: BTC) has been much stronger. After a wild ride that brought Bitcoin prices close to $ 20,000 in late 2017, the previous Bitcoin bubble burst in 2018 and the cryptocurrency ended the year down 72.6%. However, Bitcoin came back to life in 2019, ending the year up 87.2% and priced at around $ 7,200. Several factors led to an increase in Bitcoin buying in 2020. First, investors concerned about the potential long-term damage that trillions of dollars in federal stimulus could cause to the value of the dollar have flooded Bitcoin as a potential safe haven. Second, younger Americans who received three rounds of direct stimulus payments have invested a significant portion of that cash in investments, including Bitcoin. Mizuho recently estimated that the most recent round of stimulus payments of $ 1,400 alone could contribute to approximately $ 24 billion in the purchase of Bitcoin. After starting 2020 at around $ 7,200, Bitcoin prices had reached $ 10,000 by mid-February. See also: How to buy Bitcoin (BTC) In early March, the volatile cryptocurrency fell back to around $ 8,600 after news of the spread of the coronavirus in China raised concerns about a pandemic in the US. As stocks bottomed on March 23, Bitcoin investors were also feeling the pain. Investors who had bought Bitcoin as a flight-to-safety operation from COVID-19 fell big with Bitcoin priced at around $ 5,800 at the time. However, once the government stimulus payments started to flow, Bitcoin regained its hubris. By May 31, Bitcoin prices were back above $ 10,000 and haven’t traded below $ 10,000 since September 2020. Related Link: If you invested .000 in Ford stock a year ago, this is what would Bitcoin have now in 2021, Beyond: Bitcoin reached new all-time highs above $ 20,000 in December 2020, almost exactly three years after its last new high. The cryptocurrency finally hit $ 61,643 in recent weeks, more than triple its 2017 high. In recent days, the cryptocurrency has pulled back from all-time highs, settling back at around $ 55,500 at press time. . Still, Bitcoin investors who bought a year ago and held on have generated a massive return on their investment. In fact, $ 1,000 worth of Bitcoin bought on March 23, 2020 would be worth around $ 8,816 today. Given the exponential rise in Bitcoin prices in the last year coupled with the loss of stimulus payment support in the coming months, it is understandable that some investors are becoming increasingly concerned about a possible repeat of the 2018 sell-off. Bitcoin has experienced three boom-to-bust dips of more than 80% in the last decade, and a similar sell-off in 2021 could see its price drop back to around the $ 12,000 level. See more from BenzingaClick here to view Benzinga’s ‘Stimmy’ check option trading and the stock market: Will the retail trading frenzy continue? Benzinga does not offer investment advice. All rights reserved.

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