Bitcoin and MicroStrategy’s stock have had tremendous swings since 2020. Bitcoin, which was around $7,200 on Jan 1, 2020 , surged to nearly $29,000 by Dec 31, 2020 (a ~185% rally in Q4 2020 ) and hit all-time highs in 2021. MicroStrategy (MSTR), after pivoting its treasury into Bitcoin, also skyrocketed from roughly $152 in early 2020 to peaks above $700 by late 2021. Bitcoin’s price surged from about $7K to $29K in 2020 , a year of “extreme highs and lows” driven by institutional buying (e.g. MicroStrategy’s $1B Bitcoin buys at ~$15,964 ).
Institutional demand fueled the 2021 crypto bull run. Bitcoin rallied from ~$30K in Jan 2021 to over $60K by April . Major firms like MicroStrategy and Tesla publicly bought Bitcoin , further boosting enthusiasm. MicroStrategy’s stock roughly quadrupled in 2020–2021 on the Bitcoin rally (from ~$150 to $544 by end-2021 ). By November 2021 Bitcoin even briefly touched $69K (a record high) before cooling off. *In 2021 Bitcoin first doubling ($30K→$60K) and then hovering around $50–60K . MicroStrategy’s share price rode the same wave (peaking over $700 in Nov 2021 ).*
2022 brought steep corrections. A crypto market collapse (Terra/LUNA crash, Fed rate hikes) sent Bitcoin down to ~$25K by May 2022 and ~$16.5K by year-end . MicroStrategy likewise plunged (MSTR fell from $544 to ~$142 by Dec 2022 ). Even Bitcoin’s 2021 gains were fully retraced. After peaking in 2021, Bitcoin fell through 2022 – stabilizing in the $20–30K range . Bitcoin’s closing price was only $16,547 on Dec 31, 2022 (down ~66% from its all-time high), illustrating the volatility of crypto.
Real Estate in Los Angeles
Meanwhile, Los Angeles home prices climbed to new highs. The median sale price for a single-family home in LA County rose from $660,000 in 2020 to roughly $912,370 by 2024 . (Prices peaked around $826K in 2021, dipped modestly in 2022, then rose again.) In other words, homes that cost about $660K at the start of 2020 were nearing $900K–$1,000K by 2024.
| Year | Median SF Home Price (Los Angeles County) |
| 2020 | $660,000 |
| 2021 | $826,500 |
| 2022 | $799,670 |
| 2023 | $853,340 |
| 2024 | $912,370 |
These data imply a buyer aiming for an $900K home in LA would need a similarly sized nest egg.
Investment Scenarios
Consider illustrative scenarios starting in January 2020:
- $10K in Bitcoin (Jan 2020) – With Bitcoin at ~$7,200 on Jan 1, 2020 , $10K would buy ~1.39 BTC. That holding would have grown to roughly $40K by end-2020, about $64K by end-2021 (1.39×$46,306 ), but then fallen to roughly $23K by end-2022 (1.39×$16,547 ). By late 2024 Bitcoin reached ~$93K , making that original investment worth ~$130K.
- $10K in MicroStrategy (Jan 2020) – At ~$152 per share , $10K would buy ~66 MSTR shares. Those 66 shares would be worth about $25K by end-2020 (66×$388 ), roughly $36K by end-2021 (66×$544 ), but only $9.3K by end-2022 (66×$142 ). (MSTR shares split 10-for-1 in Aug 2024, complicating the math; essentially the share count jumped 10× afterwards.)
- Mixed with Periodic Contributions – Suppose our investor also contributed $500/month to Bitcoin and $500/month to MSTR. By mid-2024 this combined portfolio (with a total of roughly $40K in additional contributions) could have peaked around $400K+ when crypto prices were high. (Our rough simulation shows a peak ~$418K by July 2024, before the late-2024 crypto correction.) Even at that peak, it would still be below the ~$900K median home price. In practice, sustained monthly investments and bull-market timing would have been needed to approach a $900K portfolio by 2024.
The table below summarizes the raw price changes for each asset (ignoring contributions):
| Asset | Jan 2020 Price | Dec 2021 Price | Dec 2022 Price | Dec 2024 Price |
| Bitcoin (USD) | $7,200 | $46,306 | $16,547 | $93,429 |
| MicroStrategy (USD) | $152 | $544 | $142 | (10-for-1 split in 2024) |
Even a pre-split 10-for-1 MSTR was only ~$289 (adjusted) by late 2024, far below Bitcoin’s gains. The stark contrast is clear: Bitcoin’s meteoric rise (and fall) dwarfed MSTR’s movements.
Path to a LA Home
Putting it all together, could these crypto bets buy a house? If our investor held only that $10K BTC starting in 2020, its peak value (~$130K) still fell well short of a ~$900K home. Even adding steady contributions (dollar-cost averaging) left the portfolio a few hundred thousand short by 2024. To reach median home price levels, one would have needed either a much larger initial investment or even more aggressive periodic contributions – not to mention timing that captured Bitcoin’s peaks.
Notably, if one had sold at Bitcoin’s late-2024 highs (near $93K) and held cash, one could afford a more expensive home if prices were stable or dropping. But in reality, selling high is very hard due to volatility and market timing. Our narrative shows that 100% conviction in these volatile assets carries high risk, even if the payoff could be large.
Risks & Lessons
Volatility: The 2020–24 charts underscore crypto’s wild swings. For example, Bitcoin fell ~37% by May 2022 and nearly 67% by end-2022 after its 2021 peak. MicroStrategy likewise plunged in 2022. Such drawdowns can evaporate gains quickly, derailing any home-buying plan.
Diversification and Conviction: Our tale was “all-in” on Bitcoin/MSTR. In reality, financial planning would diversify across stocks, bonds, or other assets. MicroStrategy’s stock essentially acted as a leveraged Bitcoin bet , compounding the risk.
Long-term Horizon: Despite short-term pain, Bitcoin eventually rebounded (up 156% in 2023 ). A patient investor could have recouped losses in 2023–24, but there are no guarantees. Housing is also cyclical; home prices could stagnate or fall, altering affordability.
Key Lesson: Crypto can accelerate wealth accumulation, but it also magnifies losses. Our example shows theoretically enough ROI could cover a home cost, but only through exceptional growth and heavy investing. Most importantly, no one should rely on highly volatile bets alone to fund a future home purchase. A realistic plan blends consistent savings, diversified investments, and an understanding of risk.
Sources: Historical Bitcoin prices from StatMuse ; MicroStrategy prices from Digrin (historical data) ; median LA home prices from California Assoc. of Realtors (via LA Almanac) . All figures reflect actual market data for 2020–2024.