Investors who have never dabbled in bitcoin have likely heard about the cryptocurrency’s incredible returns. While the jury is still out as to whether bitcoin — and cryptocurrency in general — will be a viable asset over the long run, there’s no denying the massive price increase bitcoin has enjoyed. As of Aug. 12, 2025, the price of bitcoin sat at $119,681.14, according to CoinMarketCap. This compares with a price of just $7,200 on Jan. 1, 2020. For those fortunate enough to hold bitcoin over this entire period, that amounts to an astonishing gain of 1,562.24% over five and a half years.
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One of the things to remember about bitcoin, however, is that it is extremely volatile. While the gains can be breathtaking, so too can the selloffs. As people tend to get emotional about trading — panicking during drawdowns and becoming euphoric during rallies — it’s likely that numerous bitcoin holders sold out of the cryptocurrency during one of its famous crashes, like in 2022. So, if you’re considering making bitcoin a major part of your portfolio, be sure you understand the risk involved and the reasons why it trades as wildly as it does.
With that in mind, here’s a look at how much you could have made each year between 2020 and 2025 if you have invested in bitcoin.
Performance of Bitcoin in Each Year From 2020-2025
| Date | Price of Bitcoin | Yearly Return |
| Jan. 1, 2020 | $7,200 | N/A |
| Dec. 31, 2020 | $28,994.01 | 302.70% |
| Dec. 31, 2021 | $46,306.45 | 59.71% |
| Dec. 31, 2022 | $16,547.50 | -64.27% |
| Dec. 31, 2023 | $42,258.20 | 155.38% |
| Dec. 31, 2024 | $93,429.20 | 121.09% |
| Aug. 12, 2025 | $119,681.14 | 28.10% (YTD) |
With the exception of the horrible selloff in 2022, bitcoin has performed admirably. But even those that sold at the December 2022 price of $16,547.50 more than doubled their money if they bought in at $7,200 on Jan. 1, 2020. There’s simply no denying that over the past five years, bitcoin has been a great place to be. For investors who took their lumps in 2022 and held on, they’ve enjoyed huge gains in every other year over the past five.
The question going forward, of course, is if bitcoin will continue making these stellar gains or if it will round trip back down to $7,200, or perhaps even lower. You can find arguments for both outcomes among various analysts and financial pundits….
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