As Bitcoin turns the corner, here’s how much $1,000 invested at the 2022 bottom would be worth now

After the bloodbath of 2022, most cryptocurrencies started turning around at the beginning of the new year. The general increase in risk appetite has proven salutary for the space.

Bitcoin joins the party: Bitcoin BTC/USD, the top crypto, peaked at $68,789.63 on November 10, 2021 and went down for most of 2022, losing about 64.27%. The drop was far steeper than the broader stock market, but it was consistent with high-profile tech stocks. The S&P 500 Index lost a more modest 19.44%. By comparison, mega-cap stocks such as Tesla and Meta ended 2022 with a loss of around 65%.

Bitcoin’s price drop over the past year has been largely driven by macroeconomics and geopolitics, as well as crypto industry-specific risks. The fall was fast and hard. After starting 2022 at $46,311.75, it fell over the course of the first half of the year, bottoming at $17,708.62 on June 18. The Apex crypto, which currently has a market cap of just under $400 billion, then consolidated below the $25,000 mark.

The crypto retested mid-June early November lows and crashed to a fresh low of $15,599.05 on November 21, 2022. By the first week of January 2023, it was recovering around that low.

Since Jan. 8, bitcoin has started an uptrend, rising above the psychological resistance of $20,000 on Saturday, breaching the barrier for the first time since Nov. 8, 2022. In the course of the day, it surged to a high of $21,075.14.

Incidentally, the new year has brought renewed hope to financial markets as it is expected that declining inflation and a sluggish economic cycle would allow the Fed to slow or even pause rate hikes. Bond yields, which rallied sharply in 2022, have fallen significantly in the new year, meeting expectations of at least a mild recession.

Source: TradingView

See also: How to Buy Bitcoin (BTC)

Bitcoin Returns: A $1,000 investment in bitcoin at its 2022 bottom of $15,599.05 would have yielded 0.064 bitcoin. A smart investor who would have called the bottom right would now be sitting about a 37% gain in about three months (based on Sunday’s intraday high of $21,075.14).

Bitcoin bull and venture capitalist Tim Draper calls for the crypto to reach $250,000 by the end of 2023. That would equate to a delicious return of around 1085%. On the other hand, skeptics are still reserved and downcast. Notwithstanding the recent move higher, Economist peter ship has urged investors to sell bitcoin.

The crypto needs to break above near-term resistance at $21,500 to confirm the strength of the recent rally. Further up the chart, it holds resistance around $22,600.

At last check, Bitcoin is up 0.15% to $20,898.58 over the past 24 hours, according to Benzinga Pro data.

Read Next: Bitcoin Bears Get ‘Rekt’ As Shorts Suffer $74M Liquidation: Analyst Says ‘You Have To Pump It’

Photo: courtesy of Shutterstock.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers