If You Invested in Bitcoin Ahead of the Last Inauguration Day, Here’s How Much It’d Be Worth Now
December 27, 2024
As the financial world braces for a new president in January, it’s worth reflecting on a remarkable investment story: Bitcoin’s meteoric rise since the last U.S. Inauguration Day in January 2021. Back then, the cryptocurrency seemed risky to many, yet those who made the leap have seen incredible returns.
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Here’s how much an investment in Bitcoin ahead of the last Inauguration Day would be worth now.
Also see five stocks to invest in ahead of Inauguration Day, according to experts.
When President Joe Biden took office on Jan. 20, 2021, Bitcoin was priced at approximately $35,500. Specifically, it closed at $35,547.75, per Yahoo Finance.
At the time, skepticism loomed large. “Bitcoin seemed like a risky bet,” said Andrew Lokenauth, experienced Bitcoin and banking expert and founder of Fluent in Finance. “Traditional investors were just starting to take notice, and many folks doubted its future.”
Fast forward to today, and Bitcoin has smashed previous records, rising above $100,000 after the election. This means that even the most cautious investors who jumped in back then would have reaped significant rewards.
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On Dec. 23, 2024, Bitcoin closed at $94,686.24. Compared with its closing price on Inauguration Day, Bitcoin has seen a 166.36% gain.
If you had invested $1,000 on Jan. 20, 2021, your investment would be worth approximately $2,664.
If you had invested $5,000, your investment would have grown to $13,318, enough to buy a reliable used car.
If you had invested $10,000, you’d be looking at about $26,636, which could cover student loans or a down payment on a home.
While the returns are impressive, Alexandr Sharilov, CEO of CoinDataFlow, reminded investors that Bitcoin’s journey has been anything but smooth.
“By mid-2021, Bitcoin surged to over $60,000, doubling its price in just a few months. However, its volatility caused sharp corrections, with the price falling back to the $30,000 range over the summer,” Sharilov explained.
The explosive rise of Bitcoin wasn’t by chance. According to Sharilov, economic and geopolitical factors played a crucial role. “As the world grappled with a pandemic, inflation soared, and investors turned to alternative assets like Bitcoin to protect their wealth,” he explained.
“Bitcoin’s decentralized nature and limited supply make it an attractive hedge against currency depreciation and market instability. While it’s volatile, its long-term growth has consistently rewarded patient investors,” Lokenauth said.
By looking at Bitcoin’s price history and past performance, investors can learn some key lessons.
Those who took the risk on Bitcoin in early 2021 earned massive returns. “Bitcoin’s volatility can scare people off,” Lokenauth said, “but history shows that sticking with it through ups and downs pays off.”
Sharilov advised patience. “Bitcoin’s price moves in cycles, and sharp corrections are normal. If you’re ready to wait and endure volatility, Bitcoin remains a coin worth investing in,” he said.
“While Bitcoin’s growth has been phenomenal, its volatility is a double-edged sword. Invest only what you can afford to lose and focus on long-term gains,” Lokenauth said.
With another Inauguration Day on the horizon, investors are wondering whether Bitcoin’s success story will repeat itself. Sharilov offered a word of advice: “Just like in 2021, we’re in a period of economic uncertainty. History has shown that Bitcoin thrives during such times as investors seek refuge from inflation and currency devaluation.”
Lokenauth echoed this sentiment, suggesting that it’s not too late to get started. “The key is to think long-term, diversify your portfolio and not panic during downturns,” he advised.
If you had invested in Bitcoin ahead of the last Inauguration Day, your investment would have significantly outperformed traditional assets like stocks and gold. While the ride has been bumpy, those who’ve held on have seen massive gains. As both experts agree, Bitcoin remains a high-risk, high-reward investment. If you’re prepared to endure its volatility and take a long-term perspective, it could be an opportunity worth considering, especially as the next Inauguration Day looms.
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This article originally appeared on GOBankingRates.com: If You Invested in Bitcoin Ahead of the Last Inauguration Day, Here’s How Much It’d Be Worth Now
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