A $1,000 investment in Bitcoin in 2017 at $4,000 per coin would be worth $17,500 today.
The year 2017 was when Bitcoin and cryptocurrency entered the global consciousness. Bitcoin surged from $1,000 in January to just under $20,000 in December — a 20x gain in 12 months. The broader crypto market exploded alongside it, with thousands of new tokens launching through ICOs (Initial Coin Offerings).
The ICO boom raised billions of dollars for projects of wildly varying quality. Ethereum, as the platform for most ICOs, surged from $8 to $750. The total crypto market capitalization reached $600 billion by year-end. Bitcoin futures launched on the CME and CBOE in December, bringing institutional-grade trading infrastructure for the first time.
At the yearly average of $4,000, a $1,000 investment would have purchased approximately 0.25 BTC, worth around $17,500 at today's reference price of $70,000.
The timing range in 2017 was extreme. A January buyer at $1,000 got 1 BTC ($70,000 today). A December buyer at $19,000 got 0.053 BTC ($3,700 today). This 19x difference in outcome based on timing underscores why dollar-cost averaging eliminates the anxiety of trying to pick the perfect entry point.
The 2017 rally taught that euphoria is a sell signal. When taxi drivers, relatives, and TV morning shows are talking about Bitcoin, the top is likely near. The Mayer Multiple — the ratio of Bitcoin's price to its 200-day moving average — hit 2.7 at the December peak, deep in the "sell zone."
The aftermath was brutal. Bitcoin fell 84% from $20,000 to $3,200 over the following year. Most ICO tokens lost 90-99% of their value. The investors who sold during the euphoria of late 2017 and re-entered during the despair of late 2018 dramatically outperformed those who held through the entire cycle. Understanding cycle indicators helps identify these turning points.
Bitcoin experienced its most dramatic rally yet in 2017, surging from $1,000 in January to nearly $20,000 in December. The ICO (Initial Coin Offering) boom drove massive speculation across the entire crypto market. CME and CBOE launched Bitcoin futures in December, marking a milestone for institutional acceptance.
At an average price of approximately $4,000 per Bitcoin across 2017, a $1,000 investment would have purchased roughly 0.25 BTC. Buying in January at $1,000 would have yielded 1 full BTC, while buying at the December peak would have gotten only 0.05 BTC.
At a reference price of $70,000 per BTC, 0.25 Bitcoin would be worth approximately $17,500. Even during the euphoria of 2017, a long-term hold produced a 17.5x return.
Use these free tools to plan your Bitcoin strategy.