Your Bitcoin Investment
In January 2020, Bitcoin was quietly recovering from the 2018 bear market. Most people had forgotten about crypto. At $7,200 per coin, $1,000 would have purchased approximately 0.139 BTC.
At today's price of $70,000, that position would be worth about $9,730 — a 9.7x return. While not as dramatic as earlier vintages, this still significantly outperformed the stock market, bonds, real estate, and every other major asset class over the same period.
What Happened Since 2020
The 2020-2025 period was arguably the most important era in Bitcoin's history, as it transitioned from a speculative asset to a globally recognized store of value.
Price journey of your 0.139 BTC: - January 2020: $1,000 (your investment) - March 2020 (COVID crash): $528 (painful 47% drawdown) - December 2020: $4,059 (recovery and then some) - April 2021: $8,890 (institutions pouring in) - November 2021: $9,591 (cycle peak) - November 2022: $2,155 (FTX collapse bottom) - Today: $9,730
The March 2020 crash was particularly notable — your $1,000 briefly dropped to $528. Investors who panicked and sold locked in losses. Those who held (or bought more) were rewarded handsomely.
Key Events
COVID crash and stimulus (March-May 2020): The fastest market crash in history was followed by the largest monetary stimulus in history. This combination was the perfect catalyst for Bitcoin: a crisis that demonstrated the fragility of the traditional financial system, followed by money printing that highlighted Bitcoin's fixed supply.
MicroStrategy's Bitcoin strategy (August 2020): CEO Michael Saylor announced that MicroStrategy would convert its corporate treasury to Bitcoin. This was the first time a publicly traded company made Bitcoin a core balance sheet asset — legitimizing the strategy for other corporations.
ETF approval (January 2024): The SEC approved 11 spot Bitcoin ETFs simultaneously. Within months, these products accumulated over $50 billion in assets, making Bitcoin accessible to every investor with a brokerage account.
DCA Comparison
A $1,000 lump sum in January 2020 returned 9.7x. But what about DCA-ing $1,000 spread across 2020?
Monthly DCA ($83.33/month) through 2020 would have been highly advantageous. The March crash provided several months of sub-$7,000 prices, meaning your average cost would have been lower than the January price. April-June purchases at $6,500-$9,500 accumulated more BTC per dollar than the January buy.
DCA through the 2022 bear market would have been even better. Monthly purchases at $16,000-$30,000 accumulated Bitcoin that is now worth $70,000 — a 2-4x return on each individual purchase.
The principle holds across all time periods: consistent buying over time, especially during drawdowns, produces excellent long-term results. Use the Bitcoin Horizon DCA Calculator to simulate your own strategy.