The last Bitcoin (BTC) bull run, which culminated in an all-time high of almost $69,000 in 2021, was mainly driven by growing institutional interest in the crypto space.
Notably, electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) was among these entities after purchasing $1.5 billion worth of Bitcoin, a decision that saw the maiden crypto rise to the $44,000 mark.
The February 8, 2021, announcement sent shockwaves in the financial world, signaling Bitcoin’s mainstream acceptance. At the time of the purchase, Bitcoin was valued at $38,886.
Fast forward to today, July 10, 2024, and Bitcoin is trading at $58,124. Between these dates, Bitcoin has seen significant price fluctuations, including a record high of above $70,000.
Tesla’s endorsement of Bitcoin not only represented a major vote of confidence from one of the world’s most influential companies but also legitimized the cryptocurrency in the eyes of traditional investors.
Bitcoin’s return on a $1,000 investment
In this line, the returns have been impressive for those savvy investors who seized the opportunity and invested $1,000 in Bitcoin on the day of Tesla’s announcement. An initial investment of $1,000 at $38,886 per Bitcoin would have purchased approximately 0.0257 BTC.
With Bitcoin now trading at $58,124, the current value of that investment would be approximately $1,493.59. This means that the investment would have yielded a profit of $493.59.
Notably, Bitcoin’s journey since Tesla’s announcement has been anything but smooth. The overall cryptocurrency sector has experienced significant fluctuations, influenced by many factors, including regulatory news, market sentiment, macroeconomic trends, and the evolving landscape of digital finance.
It’s worth noting that although Tesla made a U-turn on its decision to accept Bitcoin, the investment extends beyond the immediate profit. It began a broader acceptance of cryptocurrencies by mainstream companies and financial institutions.
This has also translated to mainstream financial products such as the spot Bitcoin exchange-traded fund (ETF), whose approval saw Bitcoin hit another all-time high above $73,000 in early 2024.
