Dollar-cost averaging Bitcoin from 2021 market top returns 107%

Insights Bitcoin

2021 peak investors gain via Bitcoin DCA strategy: $15,200 turns into $31,473 .

Scott Melker, known as “The Wolf of All Streets,” recently highlighted the effectiveness of dollar-cost averaging (DCA) in Bitcoin investing, even for those who started at the market peak.

Investors who began purchasing $100 worth of Bitcoin weekly when it reached its previous all-time high of $69,000 would have invested a total of $15,200 over 152 weeks. Despite starting at the market peak, their position would now be worth $31,473, representing a 107.06% gain.

Bitcoin dollar cost averaging (WolfOfAllStreets)

This strategy demonstrates Bitcoin’s potential for long-term investors, as it spends limited time at its highest prices and provides extended periods for accumulation during lower price ranges.

Bitcoin’s price history supports this approach. After reaching nearly $69,000 in November 2021, it experienced significant volatility, dropping below $20,000 by the end of 2022. However, 2023 saw a strong recovery, with Bitcoin ending the year at $42,258.

It continued its upward trajectory in early 2024, setting new all-time highs. On March 14, Bitcoin reached $73,600.

Melker’s analysis illustrates the potential benefits of consistent, long-term investment in Bitcoin, regardless of short-term market fluctuations. This approach aligns with the broader trend of increasing institutional interest and mainstream adoption of Bitcoin.