Sixty-40Play

28 November 2017: Bitcoin crosses $10,000

Bitcoin topped $10,000 for the first time, after starting 2017 at under $1,000. The surge was fueled by retail buyers, hype about initial coin offerings and the expectation of soon-to-launch futures contracts. It kept climbing to nearly $20,000 within three weeks, then crashed by more than 80 percent over the following year before eventually rising far higher.

The lesson: An asset can be both a bubble and a long-term winner; survival depends on position size.

What it meant for investors

$1,000 in Bitcoin at the start of 2018 → $7,143 today, vs $2,519 in the S&P 500.

We start the clock at the start of 2018, the first year in our price data after the event. That is 7.1 times the money, and $4,624 more than a plain index fund made over the same years.

What Bitcoin teaches: Extraordinary returns came bundled with repeated drawdowns of 75 percent or more; the gains went mostly to holders who could survive each collapse without selling.

Bought inPrice thenWorth todayS&P 500 would be
2015$315$317,460$3,301
2018$14,000$7,143$2,519
2020$7,200$13,889$2,092

green = beat the S&P 500 · red = lost money

What if you bought Bitcoin? Every starting year and the full story →

28 November 2017: Bitcoin crosses $10,000