What was Bitcoin's compound annual growth rate (CAGR) since 2021?

Bitcoin's CAGR from 2021 to September 2026 was 20.2% per year. For comparison, the S&P 500 has historically averaged around 10% annually. Bitcoin significantly outperformed traditional equity markets on an annualized basis.

How does Bitcoin compare to the S&P 500 since 2021?

The same $1,000 invested in an S&P 500 index fund in 2021 would be worth approximately $2,218.04 today. Bitcoin outperformed the index by $659.84 — 1.30x the return of the S&P 500.

How much of the Bitcoin gain would you keep after taxes?

Sold today, the $1,877.88 gain would be a long-term capital gain for US federal tax. At the 15% rate most people pay, you'd keep about $2,596.20. At the top rate of 23.8% (20% plus the 3.8% net investment income tax) you'd keep about $2,430.94, and lower incomes pay 0%. State tax is extra, and gains inside a Roth IRA aren't taxed.

What is the inflation-adjusted return on $1,000 in Bitcoin since 2021?

Adjusted for cumulative US inflation since 2021, the real purchasing-power value of the Bitcoin position is approximately $2,391.46 in 2021 dollars. Inflation shrinks the gain, but the investment still grew faster than prices.

How did Bitcoin perform in 2021?

Bitcoin rose 60% during 2021, from $29,022.00 at the start of the year to $46,306.00 at the start of 2022.

What If You Invested $1,000 in Bitcoin in 2021?

Try your own numbers

If I had putintoat the start of…

it would be worth today

$2,878

+$1,878 profit2.88x20.2% a year

The same $1,000 in an S&P 500 index fund: $2,218

Aftertax on the gain, you’d keep$2,596

US federal long-term rates: 15% for most people, 0% on lower incomes, 20% + 3.8% on high incomes. No state tax included; none inside a Roth IRA.

Compare with

Growth Over Time

Performance Metrics

Total Invested

$1,000.00

Current Value

$2,877.88

Total Profit

$1,877.88

Multiplier

2.88x

CAGR

20.2%

Max Drawdown

-73.0%

Inflation-Adjusted

$2,391.46

Benchmark Comparison

How does $1,000.00 invested in 2021 compare across different asset classes?

Asset	Value Today	Return
Bitcoin	$2,877.88	2.88x
S&P 500	$2,218.04	2.22x
Gold	$2,213.49	2.21x
Savings (2% APY)	$1,120.46	1.12x

Back in 2021

In September 2021, El Salvador became the first country to make bitcoin legal tender, three months after its legislature passed the Bitcoin Law. coindesk.com
In 2021, a gallon of gas averaged $3.01 and the new iPhone 13 Pro started at $999. eia.gov apple.com
During 2021 itself, Bitcoin rose 60%, #29 of the 111 investments we track. The best was Solana (+11,084%); the worst was Zoom (−49%). Full 2021 results →

$1,000 in Bitcoin, year by year

Of the 111 investments we track that were available at the start of 2021, Bitcoin ranks #33 by growth to today — just behind Datadog and ahead of Cisco. See the full 2021 ranking →

Bitcoin started 2021 at its highest start-of-year price up to then, after rising 303% in 2020. It was worth less than the $1,000 put in at the start of 2023, and has been above it since the start of 2024. Its best January was 2025, at $3,219. Today it's 11% below that, so selling then would have beaten holding. It rose in 3 of the 5 full years since. It moved ahead of the same $1,000 in the S&P 500 at the start of 2024 and has stayed ahead since. Month by month, the deepest fall ran from Oct 2021 ($2,113) to Dec 2022 ($570.31), a drop of 73%. At its lowest month-end, in Dec 2022, it was worth $570.31.

When	Worth	Change	S&P 500
Start of 2021	$1,000	—	$1,000
Start of 2022	$1,596	+60%	$1,287
Start of 2023	$570	−64%	$1,054
Start of 2024	$1,522	+167%	$1,331
Start of 2025	$3,219	+112%	$1,664
Start of 2026	$3,015	−6.3%	$1,962
Today	$2,878	−4.6%	$2,218

Values at the start of each year (first trading day for stocks). The S&P 500 column includes reinvested dividends, like the stock values.

Historical Context

At the start of 2021, Bitcoin was priced at $29,022.00. $1,000 would have bought about 0.0345 BTC. Bitcoin is the first cryptocurrency, launched in 2009 by the pseudonymous Satoshi Nakamoto. Its supply is capped at 21 million coins.

Measured from one January to the next, Bitcoin's best year since then was 2023 (+167%) and its worst was 2022 (−64%). Holding on wasn't easy: between the start of 2022 and the start of 2023, the position fell 64% from its high.

Frequently Asked Questions

A $1,000 investment in Bitcoin at the start of 2021 would be worth approximately $2,877.88 today — a 2.88x return ($1,877.88 profit) over 5.7 years.

Methodology & Sources

Price data: Historical prices are the January 1 opening price, from CoinGecko, CoinMarketCap and Yahoo Finance historical data. Current prices come from Yahoo Finance (CoinGecko as a backup) and refresh hourly; if that source is unavailable, the last saved price is used.

Calculation: Assumes a single purchase at the start of 2021 (or the first trading day, for companies that listed that year), held until today. No transaction fees, taxes, or slippage are included.

Benchmarks: The S&P 500 comparison uses the S&P 500 Total Return index (dividends reinvested, like an index fund) at the start of2021 and today. Gold uses the price per troy ounce. Savings account assumes a 2% APY compounded annually.

Inflation adjustment: Uses U.S. CPI-U annual averages from the Bureau of Labor Statistics. The 2026 CPI value is estimated.

Educational purposes only. Past performance does not guarantee future results. Not financial advice.