Bitcoin price surged past the six-figure threshold on Wednesday night, reaching $99,000 as of Friday morning. To put this into perspective, let’s take a look at what would happen to a $1,000 investment in bitcoin made 10 years ago.
According to CNBC calculations, if you invested:
– One year ago, your total would be worth $2,305, with a 130% increase.
– Five years ago, your total would be worth $13,717, with a 1,272% increase.
– Ten years ago, your total would be worth $268,384, with a 26,738% increase.
Compared to the S&P 500 index, bitcoin has seen:
– A 33% gain since one year ago
– A 95% gain since five years ago
– A 193% gain since ten years ago
The surge in price may be attributed to institutions embracing bitcoin. The launch of spot bitcoin exchange-traded funds (ETFs) by firms like Invesco, BlackRock, and Fidelity Investments has made it easier for more investors to access the cryptocurrency.
However, experts caution that investing in cryptocurrencies is highly speculative and prone to wild fluctuations. They recommend considering alternative options, such as buying a bitcoin ETF through your brokerage account or having a small portion of crypto in your portfolio.
It’s essential to approach crypto investing with caution and only invest what you’re willing to lose. A conservative estimate would be 1% to 5% of your total portfolio.
Source: https://www.cnbc.com/2024/12/06/bitcoin-hits-record-high-how-much-a-1000-dollar-investment-would-be-worth.html