Bitcoin, Ethereum, and Dogecoin: Skyrocketing Since 2020
The March 2020 financial market crash marked a historical low due to the COVID-19 pandemic. The Federal Reserve's actions and government stimulus like the CARES Act played a pivotal role in stabilizing the markets. The SPDR S&P 500 ETF, representing the broader stock market, rebounded impressively by 149.8% from its March 2020 low, showcasing the robust recovery of U.S. stock indices.
Technology Stocks Leading the Charge
The market recovery was largely driven by technology stocks. Companies such as Apple, Amazon, Microsoft, and Tesla saw tremendous growth as the pandemic accelerated digital transformation. Meanwhile, retail investors propelled stocks like GameStop and AMC Entertainment to unexpected heights, driven by forums such as Reddit's WallStreetBets.
Rise of Cryptocurrencies
Beyond equities, the cryptocurrency market experienced a meteoric rise. Bitcoin (BTC), the leading digital currency, surged from around $5,000 in March 2020 to nearly $75,000 by early 2024. An investor who put $100 into Bitcoin at the market bottom would now see that investment grow to approximately $1,265.85.
Ethereum's Growth
Ethereum (ETH), the second-largest cryptocurrency by market cap, saw its value increase from about $110 in March 2020 to over $4,800 at its peak in 2021. With growing applications in decentralized finance (DeFi) and popularity of non-fungible tokens (NFTs), a $100 investment in Ethereum during the lows would now be valued at around $2,174.05.
Dogecoin's Unexpected Surge
Originally starting as a meme coin, Dogecoin (DOGE) saw unprecedented rises fueled by celebrity endorsements and social media campaigns. Those who invested $100 in Dogecoin at the market low enjoyed a staggering increase, with their investment ballooning to $7,463.60, marking a 7,463% surge.
In conclusion, the journey from the market's bottom in 2020 to the present has demonstrated the volatility and potential of both traditional markets and digital assets. Cryptocurrencies, in particular, have offered significant returns for those willing to take on the risks associated with their inherent volatility.
