Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Ethereum’s Big Run: As strong as the stock market has been since it bottomed on March 23, 2020, Ethereum has been much stronger.
Related Link: If You Invested $1,000 In Ripple’s XRP At Its COVID-19 Pandemic Low, Here’s How Much You’d Have Now
Several factors led to a surge in Ethereum buying in 2020 and especially in 2021. Younger Americans receiving three rounds of direct stimulus payments have poured a significant chunk of that cash into investments, including Ethereum. In addition, cryptocurrency investing became extremely trendy in 2021, and Ethereum was one of the most popular cryptos in the market.
At the beginning of 2020, Ethereum was trading around $129. By the beginning of March, the cryptocurrency had risen to $218 as news of the virus spreading in China prompted concerns about a U.S. pandemic. On March 13, 2020, Ethereum plummeted to its pandemic low of $88.50 as global stock markets tanked. The good news for Ethereum investors is the crypto bounced off that level as the stock market began to stabilize shortly thereafter and the government started printing money.
By November, Ethereum was back up above $500.
Ethereum In 2021, 2022, Beyond: On Jan. 19, 2021, influential Tesla Inc TSLA CEO Elon Musk added #Bitcoin to his Twitter bio and tweeted “In retrospect, it was inevitable.” Musk’s tweet sent the entire cryptocurrency market soaring, including Ethereum.
In 2022, Ethereum is planning The Merge, an update to its blockchain that will transition it from a proof-of-work verification model to a much more environmentally friendly proof-of-stake model.
Ethereum ultimately hit a new all-time high of $4,865 in November 2021 but has since pulled back significantly. Today, Ethereum is trading back down at $1,859.
Still, investors who bought Ethereum on the day it hit its pandemic low and held on have generated a huge return on their investment. In fact, $1,000 in Ethereum purchased on March 13, 2020, would be worth about $14,700 today.
Given the rise in Ethereum prices in the past two years coupled with the loss of stimulus payment support in 2022, some investors are understandably concerned about just how much further Ethereum prices could fall. Ethereum and other cryptos are prone to boom-to-bust drawdowns, and Ethereum prices are already down 36% in the past year.
Photo: Hi my name is Jacco via Shutterstock
