Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Dogecoin's Big Run: As strong as the stock market has been since it bottomed on March 23, 2020, Dogecoin (CRYPTO: DOGE) has been much stronger.
Several factors led to a surge in Dogecoin buying in 2020 and especially in 2021. Younger Americans receiving three rounds of direct stimulus payments have poured a significant chunk of that cash into investments, including Dogecoin. In addition, meme stock investing became extremely trendy in 2021, and Dogecoin was one of the most popular memes in the market.
After starting 2020 at around $0.002, Dogecoin prices had reached $0.003 by mid-February.
By the beginning of March, the volatile cryptocurrency was back down to around $0.002 after news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
Related Link: If You Invested $1,000 In Bitcoin At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now
When the stock market bottomed in March, Dogecoin investors were feeling the pain as well. Investors who had purchased Dogecoin as a COVID-19 flight-to-safety trade were down big with Dogecoin falling all the way down to $0.0012 on March 13, 2020. Once the government stimulus payments started flowing, however, Dogecoin regained its swagger.
By May 31, Dogecoin prices were back above $0.002, but they really ripped higher during the Reddit-fueled meme stock trading frenzy starting in January 2021.
Dogecoin In 2022, Beyond: Dogecoin eventually made it as high as $0.7398 in May 2021 before pulling back to $0.0787 today.
Still, investors who bought Dogecoin on the day it hit its pandemic low and held on have generated a huge return on their investment. In fact, $1,000 in Dogecoin purchased on March 13, 2020, would be worth about $47,500 today.
Given the rise in Dogecoin 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 Dogecoin prices could fall. Dogecoin and other cryptos are prone to boom-to-bust drawdowns, and Dogecoin prices are already down nearly 80% in the past year.
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