From market nadir to moon: How Bitcoin, Ethereum and Dogecoin have skyrocketed since 2020

The market reached its pandemic low on March 23, 2020, after a dramatic decline that wiped trillions of dollars from global markets. However, due to the swift action of the authorities, federal reserve systemHe helped instill confidence in financial markets by lowering interest rates to near zero and launching an aggressive asset purchase program.

The federal government also rolled out a multi-trillion dollar stimulus package, including: CARES ActThis included direct payments to Americans, expanded unemployment benefits, and forgivable loans to businesses.

As a result, major US stock indexes began an unprecedented recovery. of SPDR S&P 500 ETFtracks the broader market and has rebounded an impressive 149.8% from its March 2020 lows.

of Invesco QQQ Trust Series 1which primarily tracks technology-focused Nasdaq-100 The index soared even further, delivering a return of 185.2%. SPDR Dow Jones Industrial Average ETF Trustreflects the performance of DJIArecorded an increase of 120.4% over the same period. These impressive gains rewarded investors who remained patient during unprecedented disruption.

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Tech stocks and retail favorites led gains

The market recovery was primarily driven by technology stocks, which benefited from the rapid acceleration of digital transformation during the pandemic. companies like apple, Amazon, microsoft and tesla The work-from-home trend and the proliferation of e-commerce have led to explosive growth.

On the other hand, the following stocks are game stop and AMC Entertainment It has become a representative presence for individual investors, especially those who gather in the following forums. Wall Street Bets on Reddit. These retail favorites soared in 2021 as short squeezes and social media-driven trading sent their prices soaring, even as the companies faced significant fundamental challenges.

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The meteoric rise of cryptocurrencies

As the stock market boomed, the cryptocurrency market experienced an even more dramatic rise. Investors who took positions in major digital assets at the bottom in March 2020 have reaped historic profits. Bitcoin BTC/USDFor example, it skyrocketed from around $5,000 in March 2020 to an all-time high of nearly $75,000 in early 2024. For someone who invested $100 in Bitcoin at the bottom of the market, that investment would have grown to a staggering $1,265.85 by now.

Ethereum ETH/USDThe second-largest cryptocurrency by market capitalization experienced even more significant growth. Its value has increased from about $110 in March 2020 to more than $4,800 at its peak in 2021. A $100 investment in Ethereum at the time is now worth $2,174.05 thanks to increased usage on Ethereum. Decentralized finance (DeFi) Applications and their popularity Non-fungible tokens (NFTs).

dogecoin doge/usdwas initially created as a joke, but has emerged as one of the biggest winners, fueled by celebrity endorsements and a viral social media campaign. Dogecoin’s value has exploded, with people who invested $100 at the market low seeing a return of $7,463.60, a staggering 7,463% increase and highlighting the speculative fervor in the crypto market. .

what's next: As the debate over crypto regulation intensifies, these topics will be explored further at Benzinga's Future of Digital Assets event on November 19th, which will bring together key industry leaders and policymakers. We will discuss the evolving role of digital assets in politics and finance.