Even though digital assets had a wonderful time in the market to cap off 2020, the year didn’t just come and go without the usual challenges. Top of other challenges witnessed in the economy and the financial market was the coronavirus pandemic. A pandemic that first started in China in November 2019 spread across the other parts of the world in the early parts of 2020.
Responding to the growing cases worldwide, many countries chose to close down their economy and go into much-needed lockdown to reduce the infection rate. But as that happened, every asset in the economy, especially the financial market, started to suffer the effects of the lockdown, which saw Bitcoin move in a decline fashion, followed by other digital assets.
Bitcoin saw a price increase of about 600%
While other countries reacted differently to their economies’ harsh conditions during the lockdown, the United States of America decided to give its citizen’s stimulus checks of $1,200 each.
Over the time since the check was received, Bitcoin has gone on to do well in the market. The digital asset survived a sell-off, which saw it sell around $3,500 in mid-March to trade at around $30,000 to finish the year.
According to a new report, the stimulus checks that were handed to citizens of the United States around May would have seen a massive return of $9,000 of it was invested in Bitcoin at the time.
Also read:According to the recent survey, looking at the price of Bitcoin around that period and now, it is easy to denote that the digital asset has seen profits in the range of around 600%. While most of the citizens were said to have used the days for necessary basic needs, there were rumors that some of them put the entire check into the leading digital asset.
Ethereum gained more than Bitcoin during the period
With Bitcoin appearing as the better option, some of the citizens decided to pool in their entire check into Ethereum. Even though most people would’ve written off a chance of a profit with Ethereum, that was not to be as the digital asset would have brought them a massive profit of over 1,000%.
In the case of the analysts, even though it was surprising that one would think that Ethereum would outperform Bitcoin, that was not the case as the second digital asset banked on several factors to make a staggering rise.
When the checks were handed out, the digital asset traded around $151, but it has made a rapid rise to trade around $1,700 presently. Even though the price of the asset has skyrocketed, the same $1,200 checks would have seen a trader buy the same amount of 7.5 Ethereum.
Ethereum has also seen another surge to push the price of the digital asset close to $1,800. With the present value, the price of the same Ethereum bought back then would cost nothing less than $13,000 now, which signifies about 1,000% in returns.
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