The long-term trend for the Bitcoin (CRYPTO: BTC) price remains inexorably upward, at least for now.
But the world's original and biggest crypto continues to be notoriously volatile.
So, before you buy into the crypto markets, make sure you can stomach a wild ride that could well see you deep in the red one month and sitting on fat gains the next, before that cycle repeats.
Here's what I mean…
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Taking a $10,000 punt on Bitcoin in June 2022
Three years ago, on 15 June 2022, Bitcoin was trading for US$22,596, according to data from CoinMarketCap.
That means for US$10,000 you could have bought 0.4426 Bitcoin.
Or 44.26 million Satoshis. That's the smallest unit of BTC, named after the supposed and still unknown creator of the token, Satoshi Nakamoto.
That price, by the way, was down from highs of more than US$65,000 in October 2021.
And over the next four months following the $10,000 crypto investment you made in June 2022, BTC again plunged some 25% to trade for US$16,900 in December 2022.
From there, Bitcoin once more turned higher, though still with plenty of hefty daily price swings along the way.
On 5 November 2024, shortly before Donald Trump's victory in the United States presidential race was confirmed, the Bitcoin price stood at US$67,811.
But with the self-proclaimed "crypto president" pushing for a free market approach to cryptos, and signing an executive order in January stating that the US will build a strategic reserve of cryptocurrencies, the BTC price surged above US$100,000 for the first time ever in December.
Atop the Trump effect, the world's top crypto has also been benefiting from the big rise in institutional money flowing into Bitcoin exchange traded funds (ETFs).
And both retail and institutional investors have been upping their crypto exposures amid concerns that the mountainous US debt pile could result in a material fall in the US dollar.
Most recently, Mena Theodorou, co-founder at crypto exchange Coinstash, noted that:
Optimism around resumed US and China trade talks has pushed BTC above US$109,000, buoyed by speculation that reduced geopolitical tension could restore broader market confidence.
Theodorou added that institutional support for Ethereum (CRYPTO: ETH) is also strengthening.
"BlackRock has reportedly added over US$500 million in ETH to its books in the past two weeks, a possible signal that traditional finance is readying its long-term Ethereum play." Theodorou said.
So, what's the present value of that $10,000 BTC investment?
Getting back to our headline question, after reaching a new all-time high of US$111,970 on 23 May, Bitcoin is currently trading for US$103,424.
Meaning the 0.4426 BTC you bought three years ago for US$10,000 is currently worth (a rounded) US$45,775. Or a gain of 357.8%.
And, in case you're wondering, a US$10,000 investment in Ethereum three years ago would be worth around US$15,130 today, representing a gain of 51.3%.
The world's number two crypto is currently worth US$2,540, still well off its 16 November 2021 record highs of US$4,892.
