Coin Metrics researchers found that investors who have performed dollar cost averaging at Bitcoin (BTC) since the peak of USD 20,000 in 2017 are still profitable. According to the researchers, an investor who bought BTC continuously over the past three years would have a 61.8% return.
Although the price of Bitcoin fell significantly from USD 20,000, there were extremely low points in 2019 and 2020. Investors who capitalized on these strong downward trends will easily benefit from today’s large profits.
US Investors Strongly Prefer Bitcoin Over Other Crypt Currencies
Coin Metrics said:
„Although Bitcoin is still trading 30% below ATH, the dollar cost averaging since the peak of the market in December 2017 would have returned [sic] 61.8%, or 20.1% annually. Similarly for Ethereum (still 71% below its peak), the dollar cost averaging since January 2018 would have returned [sic] 87.6%, or 27.9% annually.
Graph illustrating positive BTC return from dollar-cost averaging
The data shows the resistance of Bitcoin
In the early days of Bitcoin, high-profile investors and financial institutions doubted its ability to survive. Some companies were cautiously optimistic about crypto-currencies, but most were keeping their distance from the new emerging asset class.
Over time, as the price of Bitcoin has recovered strongly from extreme corrections to the USD 3,150 and USD 3,600, investor sentiment has changed. In June, JPMorgan, whose CEO publicly criticized Bitcoin in 2018, said that the major cryptomone has staying power.
Someone transferred $1 billion into Bitcoin for less than $5
A team of JPMorgan strategists led by Joshua Younger and Nikolaos Panigirtzoglo also emphasized that the March crash showed Bitcoin’s longevity.
As billionaire investor and hedge fund legend Paul Tudor Jones said, Bitcoin is getting stronger every day it survives. Compared to other asset classes, BTC is still relatively young, which makes it attractive to investors.
Bitcoin’s longevity, staying power and resilience have allowed the digital asset to recover fairly quickly from major setbacks. This cycle of high peaks and extremely low bottoms makes average costs a profitable method of gaining exposure to Bitcoin.