Bitcoin records over 800% jump for FY21, Ethereum increases 1,300%
Bitcoin provided a return of over 800% in the financial year 2020-21.
In a year when covid-19 ruled every conversation, cryptocurrencies grew popularity among investors like no other. The world’s eldest and the major cryptocurrency, bitcoin, burst out back into the limelight this financial year, setting its reputation as digital gold.
In positions of returns as well, digital assets relished a commanding lead over other asset classes. Bitcoin transported a return of over 800% during the financial year 2020-21. From the $6,641 near on 1 April 2020, the worth of the digital currency increased to an all-time high of $61,711.87 through the year. It was trading at $58,587.75, down 0.5% everywhere from 8.10 pm IST on Wednesday, as per CoinGecko.
Bitcoin broke the $50,000 level for the first time on 16 February 2021, closely a decade after the cryptocurrency hit the $1 mark on 9 February 2011.
In contrast, the BSE Sensex has brought around 75% returns, while gold was flat for the financial year 2020-21.
According to authorities, the first leg of the rally in bitcoin through the year came on the back of retail demand, as persons globally looked at the cryptocurrency as a hedging decision against inflation. The second leg of the rally came as bitcoin went mainstream with several major institutions backing the crypto asset.
It all happened with the US-based enterprise software business MicroStrategy Inc, which in August said that it was using present cash on its balance sheet to obtain the cryptocurrency. As of 12 March 2021, the company was holding $5.1 billion worth of cryptocurrency on its balance sheet.
Elon Musk-led Tesla Inc revealing its $1.5-billion investment in bitcoin in February was one more big boost for the cryptocurrency. Tesla is so far the major company in the world to back the digital asset. Musk is one of the projecting names that have come out in the care of cryptocurrencies during the year.
CBW - External Analyst