If You Invested ₹1,000 In Bitcoin A Year Ago, Here's How Much You'd Have Right Now

The cryptocurrency market, and Bitcoin BTC/USD in particular, has been a roller coaster ride over the past year.

Bitcoin, the world’s largest cryptocurrency by market capitalization, has seen its value fluctuate significantly, reflecting the volatile nature of the crypto market and the regulatory environment in India.

The Investment: If you had invested ₹1,000 in Bitcoin a year ago, on June 2, 2022, when the price was ₹23.54 lakh you would have received approximately 0.0004247423325 Bitcoin.

Fast forward to today, with the current price level of around ₹22.37 lakh your initial investment would now be worth approximately ₹950. This represents a decrease of ₹50 on your initial investment.

The Context: In the past year, a variety of global events have significantly impacted Bitcoin’s price, making it crucial to consider these factors when understanding its performance.

As of Friday, Bitcoin is up 63% year-to-date and Ethereum ETH/USD is up 57%, posting a significant recovery since late 2022’s bear market.

Developments in artificial intelligence, concerns about potential debt default by the U.S. government, and interest rate hikes from the Federal Reserve have influenced the crypto market lately. Without other clear catalysts, concerns about inflation, monetary policy, and regulatory uncertainty may continue to drive price movements in June.

See More: Top 5 Bollywood Stars Who Have Own NFT Collections

The regional bank crisis in the U.S., whose start and end coincided with the crypto rally, also impacted trading. However, as this issue seemed to resolve itself, liquidity providers left the crypto market, and the ongoing regulatory crackdown on the industry in the U.S. forced firms such as Coinbase to consider diversification options overseas​.

In India, the government has recently taken significant steps towards regulating the cryptocurrency industry. The Finance Ministry added the industry to anti-money laundering (AML) rules, requiring crypto-related businesses to register with its Financial Intelligence Unit (FIU) and comply with other mandatory processes under the Prevention of Money Laundering Act (PMLA).

This move, which follows investigations into several of India’s crypto exchanges, is seen as a step towards implementing the FATF recommendation on virtual assets and adds more legitimacy to crypto in India. However, some have expressed concerns that these new regulations could negatively impact centralized crypto entities in India, reducing large transactions and pushing businesses toward decentralized exchanges and companies​.

Price Action: Bitcoin’s price was down by approximately 4.96% over the past year, trading at ₹22.37 lakh at the time of writing.

Read next: The Art Of The Future: Lisa Ray’s TheUpsideSpace Bring NFTs To Center Stage

Disclaimer: Benzinga India doesn't give financial advice. The above article is for educational purposes alone.

Investing in cryptocurrencies like Bitcoin involves significant risk due to their volatile nature. Investors should carefully consider their risk tolerance and investment goals before investing in the crypto market.

Editor's Note: Artificial intelligence was used as a secondary aid in the writing of this story.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: CryptocurrencyEducationMarketsPersonal FinanceGeneralBitcoin