The market reached its pandemic-induced bottom on March 23, 2020, after a dramatic sell-off that wiped trillions of dollars from global markets. However, swift action by the Federal Reserve, including slashing interest rates to near-zero and launching aggressive asset-purchasing programs, helped instill confidence in financial markets.

The federal government also rolled out multi-trillion-dollar stimulus packages like the CARES Act, which included direct payments to Americans, expanded unemployment benefits and forgivable loans to businesses.

As a result, major U.S. stock indices began an extraordinary recovery. The SPDR S&P 500 ETF, which tracks the broader market, rebounded by a staggering 149.8% from its March 2020 low.

The Invesco QQQ Trust Series 1, which primarily tracks the tech-heavy Nasdaq-100 index, surged even higher, returning 185.2%, while the SPDR Dow Jones Industrial Average ETF Trust, reflecting the performance of the DJIA, saw a 120.4% gain over the same period. These remarkable returns have rewarded investors who remained patient during the unprecedented turmoil.

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Tech Stocks and Retail Favorites Lead the Rally

The market recovery was largely driven by technology stocks, which benefited from the rapid acceleration of digital transformation during the pandemic. Companies like Apple, Amazon, Microsoft and Tesla experienced explosive growth as work-from-home trends and e-commerce dominated.

Meanwhile, stocks like GameStop and AMC Entertainment became poster children for retail investors, particularly those congregating on forums like Reddit’s WallStreetBets. These retail favorites skyrocketed in 2021, with price surges fueled by short squeezes and social media-driven trading, despite their companies facing significant fundamental challenges.

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Cryptocurrency’s Meteoric Rise

As equities boomed, the cryptocurrency market experienced an even more dramatic rise. Investors who took positions in major digital assets at the March 2020 bottom saw historic gains. Bitcoin BTC/USD, for instance, surged from around $5,000 in March 2020 to all-time highs near $75,000 in early 2024. For those who invested $100 in Bitcoin at the market bottom, their investment would have grown to an astonishing $1,265.85 by the present day.

Ethereum ETH/USD, the second-largest cryptocurrency by market capitalization, experienced even more substantial growth. Its value increased from roughly $110 in March 2020 to over $4,800 at its peak in 2021. A $100 investment in Ethereum back then would now be worth $2,174.05, thanks to its growing use in decentralized finance (DeFi) applications and the popularity of non-fungible tokens (NFTs).

Dogecoin DOGE/USD, initially created as a joke, emerged as one of the biggest winners, fueled by celebrity endorsements and viral social media campaigns. Dogecoin’s value exploded, giving those who invested $100 at the market’s low a return of $7,463.60—a staggering 7,463% increase, highlighting the speculative fervor in the crypto markets.

What’s Next: As the debate over cryptocurrency regulation heats up, these topics will be further explored at Benzinga’s Future of Digital Assets event on Nov. 19, where key industry leaders and policymakers will gather to discuss the evolving role of digital assets in politics and finance.