Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the last two years. But there is no question some investments performed better than others since the pandemic bottom.
Litecoin’s Big Run: As strong as the stock market has been since it bottomed on March 23, 2020, Litecoin (CRYPTO: LTC) has been much stronger.
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Litecoin prices started heading in the right direction in 2020 thanks to massive government stimulus spending to support the economy during the COVID-19 pandemic. Since the pandemic began, the government has spent more than $6 trillion, and investors concerned about the potential for hyperinflation have poured into cryptocurrencies as potential hedges.
In addition, cryptocurrency investing became extremely trendy in 2021, and Litecoin was one of the most popular cryptos in the market.
At the beginning of 2020, Litecoin was trading at just $41.33. When March kicked off, the cryptocurrency had risen to $58.53 as news of the virus spreading in China prompted concerns about a U.S. pandemic.
On March 13, 2020, Litecoin plummeted to its pandemic low of $25.57 as global stock markets tanked. The good news for Litecoin investors: the crypto bounced off that level as the stock market began to stabilize shortly thereafter and the government started printing money.
By Nov. 1, 2020, Litecoin was back up to $55.59.
Litecoin In 2022, Beyond: On Jan. 19, 2021, influential Tesla Inc (NASDAQ:TSLA) CEO Elon Musk added #Bitcoin to his Twitter bio and tweeted “In retrospect, it was inevitable.” Musk’s tweet sent the entire cryptocurrency market soaring, including Litecoin.
Litecoin ultimately hit a new all-time high of $413.63 in May 2021, but has since pulled back significantly. Today, Litecoin is trading back down at $52.04.
Still, investors who bought Litecoin on the day it hit its pandemic low and held on have generated a nice return on their investment. In fact, $1,000 in Litecoin purchased on March 13, 2020 would be worth about $1,551 today.
Given the rise in Litecoin prices in the past two years coupled with the loss of stimulus payment support in 2022, some investors are understandably concerned about just how much further Litecoin prices could fall. Litecoin and other cryptos are prone to boom-to-bust drawdowns, and Litecoin prices are already down 65% in the last six months.