Is DCA the way? Diligent Bitcoin Buyers Reported Back in the Black

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If you’ve consistently stacked Bitcoin through daily recurring purchases until today, congratulations! Your investment has officially earned a profit, according to new analysis.

A tweet from Bitcoiner @w_s_bitcoin (also known as Wicked) on Monday highlighted a “weighted average cost of Bitcoin bought” chart that shows investors who continue to “average dollar cost” (DCA) in the biggest crypto asset can now call their strategy a success, no matter when they started investing.

DCA is a strategy in which investors invest a fixed amount in a stock or cryptocurrency at regular intervals, regardless of changes in the price of the assets. This practice aims to reduce the stress and complexity of timing a notoriously volatile market, and is often encouraged by prominent Bitcoiners as a wiser alternative to active trading.

According to the chart, the weighted average cost of Bitcoin purchased stood at $31,233 as of July 3, its highest price since June 2022.

When the entire orange line crosses below the dotted white line, that’s when ALL daily DCAers take profit, Wicked explained.

This does not mean that all Bitcoin holders are in the green, and certainly not those who bought at $69,000 in November 2021 and did nothing thereafter. However, those who have continued to make recurring purchases from then until now have made up for their losses by also buying during dips, such as when Bitcoin crashed below $16,000 after FTX fell.

Regular stacking is profitable for everyone even when Bitcoin is down 55% from the peak, Bitcoin Standard author Saifedean Ammous tweeted on Monday. An amazing testimony to the power of Bitcoin as a saving technology.

Bitcoin is up 85.4% year-to-date, supported by declining confidence in the banking system in March and growing confidence in the likelihood of a Bitcoin cash ETF being approved in the United States. United since BlackRocks filing in June.

Asset gains also put MicroStrategy back in the profit zone. The company is one of the largest bitcoin holding companies, holding 152,333 BTC in total, collectively acquired through a series of recurring purchases since August 2020. The company’s executive chairman, Michael Saylor, is known to advise its subscribers never to sell their Bitcoin.

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