Cryptocurrencies have been in crisis since late last year, as buying interest surged in anticipation of a regulatory nod for locate Bitcoin Bitcoin/USD exchange-traded funds. Although the rally stalled after the SEC approval in early January, it resumed after the break.
Which of the most popular and well-owned cryptocurrencies has generated better returns for investors?
Stratospheric climb: After a forgettable 2022, most cryptocurrencies began to take off in 2023, with most of the rally occurring towards the second half of the year. The rally was partly due to bargain hunting, as investors looked past the scandals and overall risk aversion improved. But much of the buoyancy came thanks to optimism over the spot approval of the Bitcoin ETF and the impact it would have on the space.
A Bitcoin spot ETF has been perceived as a way for investors to gain greater exposure to digital assets without having to own them directly, which could encourage wider adoption of cryptocurrencies.
Bitcoin ended 2022 with a loss of more than 64% at $16,547.50. The cryptocurrency began a slow and steady recovery in 2023, and the rally only began to accelerate after the apex cryptocurrency broke above a key resistance around $30,000 in late October. After moving sideways for much of January, Bitcoin’s rally accelerated again in February.
Despite warnings from skeptics of a potential correction, cryptocurrency investors appear to have thrown caution to the wind and continued buying.
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Returns from investment: Bitcoin is trading just below the $70,000 mark after breaking above the level last week. The performance of Ethereum ETH/USDthe second largest cryptocurrency, has been a silent performer.
Same angle Shiba Inu SHIB/USDalthough late, it has made notable gains this year. Dogemoneta DOGE/USDanother favorite, also gained ground.
Assuming a hypothetical scenario where an investor bet $1,000 on each of these cryptocurrencies, here’s how much return they would generate now.
- $1,000 invested in Bitcoin at the end of October would have yielded 0.029 Bitcoin. It would now be worth $1,975.87 (based on Saturday’s closing price). This translates to a return of around 98% in just over three months.
- The same $1,000 invested in Ethereum at the end of October would have yielded 0.55 of the cryptocurrency. That would be worth about $2,150, a yield of about 115%.
- If the investor had invested the dollars in SHIB, the $1,000 would have gotten him 125,000,000 SHIB. The same would be worth $4,250, a 325% return.
- If the investor had decided to invest $1,000 in DOGE at the end of October, he would have received 14,646 meme coins. At Saturday’s close the stake would be worth $2,623, a gain of 162%.
According to data from Benzinga Pro, Bitcoin rose 1.61% to $69,472.43, Ethereum gained a modest 0.31% to $3,906.97, while SHIB fell 4.61% to 0.000034 $ and Doge slipped 3.25% to $0.174072.
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