Bitcoin hits record high-how much a $1,000 investment would be worth

Bitcoin hit a big milestone: On Wednesday night, the digital currency’s price crossed the six-figure threshold for the first time. As of Friday morning, that number hovered around $99,000 according to CoinMetrics. Throughout the day on Thursday, though, the value rose as high as $103,844. Here’s how much a $1,000 investment in bitcoin made one, five or 10 years ago would be worth based on the digital currency’s Dec. 5 midmorning price of $101,564, according to CNBC calculations. If you invested one year ago Percentage change: 130%
130% Total as of Dec. 5: $2,305 If you invested five years ago Percentage change: 1,272%
1,272% Total as of Dec. 5: $13,717 If you invested 10 years ago Percentage change: 26,738%
26,738% Total as of Dec. 5: $268,384 Here’s how that compares with the S&P 500 index, which is often viewed as a benchmark of the overall stock market. Percentage change since one year ago: 33%
33% Percentage change since five years ago: 95%
95% Percentage change since 10 years ago: 193%
What prompted bitcoin to hit its new all-time high
One potential reason behind the surge may be some of Wall Street’s key institutions’ embrace of bitcoin. Several large investment firms including Invesco, BlackRock and Fidelity Investments launched the first spot bitcoin exchange traded funds in January. Since an ETF tracks the price of an underlying asset or index, bitcoin ETFs provide a way to invest, and benefit from potential price movements, without owning the cryptocurrency itself. With the availability of bitcoin ETFs, a larger number of investors can gain access to bitcoin. And as demand rises, so does the price, Douglas Boneparth, president of Bone Fide Wealth and a member of CNBC’s Financial Advisor Council, told CNBC Make It on January 5. Bitcoin’s value has fluctuated wildly over the past few years. The virtual currency hit an all-time high of $69,000 in November 2021, only to lose around 75% of its value following the collapse of FTX, the largest crypto exchange at the time, in November 2022. Since then, though, it has made a steady recovery and is up around 125% year over year, per CoinMetrics.
Cryptocurrency remains highly volatile