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To buy assets on the dip is mostly used and a popular practice that investors use; similar situations made up during the Covid-19 pandemic, but how effective was it
When the Covid-19 pandemic hit and the market crashed in 2020, many investors bought stocks at heavily discounted prices, and now after two years, almost everyone has gained huge profits. Although every other asset has ultimately made a profit after experiencing the bottom since the pandemic, there are several big-name stocks that undoubtedly performed better than others.
One such big-name asset is Ethereum, which has grown much stronger since its bottom price on 23rd march 2020. Several factors were behind the surge in price and Ethereum (ETH) buying in 2020 and 2021. During the pandemic, a significant number of Youngsters in America who were receiving direct stimulus payments upto three rounds have heavily invested and poured a huge chunk of their received amount into investments like Ethereum (ETH).
This followed the extreme surge in the trend of crypto investment in 2021 that made Ethereum (ETH) one of the preferable choices given its popularity in the crypto space. At the very beginning of the year 2020, the trading price of Ethereum was around $129. Still, soon, by the month of March, it rose to $218 following the news of Covid-19 spreading in China, prompting the concerts regarding the similar situations in the United States.
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However, on 13th March 2020, Ethereum grounded to its low of $88.5, which could have been bad news for Ethereum (ETH) investors, but it didn’t last for long. Soon enough, the government indulged in printing money that brought liquidity to the market, ultimately leading the stocks and crypto market towards stabilization.
In November 2020, Ethereum (ETH) was trading at $500. In early 2021, Tesla CEO and certainly one of the most influential personalities on social media then and even today, Elon Musk put some changes to his Twitter bio. Musk added #Bitcoin on his bio and tweeted that it was inevitable in retrospect. This brought sensation to the entire crypto market, resulting in price surges all over, including Ethereum (ETH).
In November 2021, Ethereum (ETH) ultimately reached its all-time high and was trading at $4,865. However, many instances took place later on that significantly pulled down its price. Today, Ethereum (ETH) is trading at about $1,764. However, this is still significantly higher than its pandemic low, and the answer to the question is that if you had put $1000 in Ethereum (ETH) during its pandemic low, you would be sitting at a profit of approx $14,000.