© Reuters If You Held $1,000 In Bitcoin, Ethereum, And Dogecoin On New Year’s Day, Here’s How Much You Would’ve Lost This Year
The cryptocurrency markets have been in a sharp downtrend over the last week. The market cap of the crypto sector currently sits at $977 billion, which is approximately one-third of its all-time high. Consequently, retail investors globally have suffered major losses, as most cryptocurrencies are trading 70% below their all-time highs.
Here’s a look into how much you would have lost year-to-date if you held $1,000 in (CRYPTO: BTC), (CRYPTO: ETH) and (CRYPTO: DOGE):
Bitcoin: On Jan. 1, 2022, Bitcoin was trading at $47,686 and is trading at $22,499. Therefore, with a return rate of negative 52.81%, $1,000 invested at the start of the year would be worth $471.81.
Ethereum: On Jan. 1, 2022, Ethereum was trading at $3,769 and it now is trading at $1,230. Thus, with a return rate of negative 67.36%, $1,000 invested at the outset of the year would currently be worth $326.30.
Dogecoin: On Jan. 1, 2022, Dogecoin was trading at $0.1730 and presently is trading at $0.056. With a return rate of negative 67.63%, $1,000 invested at the beginning of the year would be worth $323.60.
The Crypto Landscape: The latest crypto crash can be attributed to a multitude of factors. Increased inflation fears and the halting of cryptocurrency lending firms, such as Celsius, occurring within a month of the infamous crash of (CRYPTO: LUNA), serve as the immediate catalysts for such sharp price action.
In the macro scheme of things, there are fears of an impending recession, after the latest CPI data indicated inflation rates being at an all-time high of 8.6%, causing investors globally to behave in a risk-averse manner.
Benzinga’s Take: It is good to remember that crashes are natural for the cryptocurrency market. $1,000 invested in Bitcoin exactly two years ago, on June 14, 2020, would be worth $2,334.
Furthermore, $1,000 invested in Ethereum on the same date would be worth $6,216.
Dogecoin over the same span of time grew from $1,000 to $23,584. Therefore, over a horizon of multiple years, the cryptocurrency markets have rewarded patient investors.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.