Daily Bitcoin investors have increased 40% in the last 2 years.

Will Bitcoin Price Rally Continue in Q2?  7 key issues (opinion)



Consistent, diligent buyers of Bitcoin (BTC), who have piled on the sat for nearly two years, have significantly outperformed investors in other asset classes — despite entering one of the worst times to enter the crypto market.

As of November 10, 2021, the value of the dollar has made Bitcoin buyers 40% green on average.

Bitcoin is DCA way

Dollar Cost Averaging (DCA) is the purchase of bitcoins for equal amounts of fiat currency at regular intervals (daily, weekly, etc.) regardless of the asset's value.

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It is a popular investment strategy for those who want to ease the burden of timing volatile markets and use BTC as a long-term savings vehicle.

According to Dylan LeClair – Market Intelligence Expert at UTXO Management – this strategy was not that profitable for TradFi investors. Diligent gold and SPX buyers saw gains of just 5%, while long-term US bond holders were down 14% (excluding dividends).

In the year November 10, 2021, was the day Bitcoin hit an all-time high of $69,000. Over the next 12 months, rising interest rates and contagion industry booms will push the price down to $15,500 by November 2022.

Another year later, Bitcoin is back to $36,000 per coin – a 119% increase for anyone who bought it in early 2023. Buying at low prices has more than compensated DCA investors for their dramatic losses in the previous year.

Can DCA ever be wrong?

With Bitcoin trading at $30,000 in July, data from CryptoQuant shows that starting a DCA strategy at any time will make investors profitable, except for those who started buying between June 2020 and September 2021.

As of today, LeClair's data shows that entry points without this benefit have further decreased. For example, DCA BTC started at a peak of $64,000 in April 2021 and is still up 27% today.

By comparison, Nasdaq investors are up 13 percent, while gold buyers are up just 6 percent. Bondholders will be deeper in the red at -17%.

Finally, starting January 1, 2021, one person's Bitcoin DCA puts buyers at 87% profit. Since then, the actual value of Bitcoin has increased by 400%.

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