In 2020, during the COVID-19 pandemic, the U.S. government issued $1,200 stimulus checks to eligible Americans under the CARES Act. While many used the funds for immediate needs, some saw an opportunity for long-term investment, particularly in Bitcoin (BTC), which was trading at a fraction of its current value. Fast forward to 2024, Bitcoin has reached a historic milestone, crossing the $100,000 mark with significant interest from both institutional and retail investors.
Bitcoin is currently trading at $99,866, reflecting a 7% weekly gain and a 31% surge on the monthly chart. If one had invested the full $1,200 stimulus check in Bitcoin in April 2020 when it was around $6,966, they would have acquired approximately 0.1723 BTC. With Bitcoin now near $99,773, that initial investment would be worth $17,187—a return of nearly 1,387%.
The first stimulus checks were aimed at alleviating financial stress during the pandemic. Subsequent rounds, like the $600 check in December 2020, presented similar opportunities. Investing this second round in Bitcoin when it was trading around $33,098 would result in a portfolio worth $2,144 today—an impressive 257% increase. Despite income growth outpacing debt accumulation, many American households are still dealing with record-high debt of $17.9 trillion in Q3 2024, driven by student loans, credit card balances, and auto loans.
Bitcoin’s market evolution over the past four years has been driven by increasing adoption, institutional interest, and market developments such as the approval of spot exchange-traded funds in the U.S. Institutional players like BlackRock and Fidelity have contributed to this surge, with BlackRock’s iShares Bitcoin Trust registering cumulative inflows of $34.4 billion since its launch. Regulatory winds also favor Bitcoin’s trajectory, with the appointment of a pro-crypto advocate as SEC Chair bolstering market optimism.
Despite bullish ETF inflows and regulatory clarity, market risks remain, including potential oversupply concerns. Those who invested their stimulus checks in Bitcoin have seen extraordinary returns, outpacing traditional asset classes. As Bitcoin gains institutional traction and regulatory clarity, its role as a transformative financial asset appears solidified, but the journey to $120,000 or potential downward pressure from oversupply remains uncertain for investors navigating this evolving landscape.
