Scott Melker Points out Success of Bitcoin Dollar-Cost Averaging
Scott Melker, alias “The Wolf of All Streets,” recently spoke on the success of dollar-cost averaging in investment in Bitcoin. In his analysis, he pointed out that even investors who started buying Bitcoin at its peak in the market in 2021 have gained significantly.
Investment in Bitcoin at Its Peak in 2021
When BTC reached $69,000 in November 2021, many investors had a fear of the possible downside. All the same, those who started investing $100 every week into it through the DCA strategy would have, over time, gathered $15,200 worth of BTC over 152 weeks. Having bought at the very height of the market, by now their investment would have been worth $31,473 for a gain of 107%.
Bitcoin’s Price Journey Since 2021
It’s been quite a wild ride for the price of bitcoin since it reached its high. From the high of $69,000, the cryptocurrency plunged below $20,000 toward the end of 2022. However, BTC surged decisively in 2023 and finished the year at $42,258. It continued higher in 2024 and had reached a new all-time high of $73,600 by March.
The Advantages of Dollar-Cost Averaging
The analysis by Melker shows the power of consistency and long-term investing. The DCA strategy allows investors to buy BTC on dips, hence minimizing losses in this highly volatile market. It is a sure route to investing in Bitcoin without trying to time the market and hence ideal for institutional investors and mainstream adopters.
Conclusion
The 107% return via dollar-cost averaging BTC demonstrates that this can be a very valid strategy, even when dollar-cost averaging in at a very high point in the market. With BTC continuing to become more and more popular with institutions and retail investors, DCA provides a sound, predictable route for the long-term investor interested in cryptocurrency yet concerned about the inherent volatility.
