Your Bitcoin Investment
January 2020 was a period of cautious optimism for Bitcoin. The market had recovered from the 2018 lows but hadn't yet recaptured the 2017 highs. At $7,200 per coin, a $100 investment would have purchased approximately 0.0139 BTC.
At today's price of $70,000 per Bitcoin, that position would be worth roughly $973 — a solid 9.7x return, but modest compared to earlier vintages. This illustrates the diminishing (but still substantial) returns available as Bitcoin matures.
What Happened Since 2020
The 2020-2024 period was transformative for Bitcoin. It went from a speculative asset to a recognized store of value with institutional backing.
Key milestones: - March 2020: COVID-19 crash took Bitcoin to $3,800 before massive monetary stimulus drove a recovery - August 2020: MicroStrategy became the first public company to adopt Bitcoin as a treasury reserve asset - October 2020: PayPal announced Bitcoin support for its 350 million users - April 2021: Bitcoin reached $64,000, Coinbase went public on NASDAQ - November 2021: Bitcoin hit $69,000 before a year-long bear market - January 2024: Spot Bitcoin ETFs approved in the US - April 2024: Fourth halving reduced block rewards to 3.125 BTC
Key Events
March 2020 — COVID crash and recovery: The pandemic triggered a global selloff. Bitcoin dropped 58% in two days but recovered within months as central banks injected trillions in stimulus. This event demonstrated Bitcoin's resilience and its correlation to global liquidity.
2020-2021 — Institutional wave: MicroStrategy, Tesla, Square, and dozens of other companies added Bitcoin to their balance sheets. This was the first cycle where institutional money — not just retail speculation — drove price appreciation.
January 2024 — ETF approval: The SEC approved spot Bitcoin ETFs, allowing traditional investors to gain Bitcoin exposure through their existing brokerage accounts. Billions of dollars flowed into these products within weeks, marking Bitcoin's full arrival as a mainstream financial asset.
DCA Comparison
A $100 lump sum in January 2020 turned into $973. But what about dollar-cost averaging $100 per year ($8.33/month) starting in January 2020?
The DCA advantage during COVID: If you were DCA-ing monthly in 2020, March's crash actually helped you — you bought significantly more Bitcoin at $3,800-$5,000 than you would have at $7,200-$9,000. Those discounted purchases boosted your overall returns.
The DCA advantage during the 2022 bear: Monthly purchases through the 2022 bear market ($16,000-$25,000 range) accumulated Bitcoin at prices that doubled or tripled within 18 months as the market recovered.
Try the DCA Calculator on Bitcoin Horizon to see exactly how a 2020-present DCA strategy would have performed compared to a lump sum.