A recent analysis indicates that if you have consistently accumulated Bitcoin through daily recurring purchases up until now, you should be pleased to know that your investment has now become profitable.
In a tweet by a Bitcoin enthusiast (also known as “Wicked”) on Monday, a chart displaying the “weighted average cost of purchased Bitcoin” was shared, demonstrating that investors who consistently practice dollar cost averaging (DCA) when investing in the predominant cryptocurrency can now consider their strategy a triumph, regardless of their initial investment timing.
Dollar-cost averaging (DCA) is an investment strategy where individuals invest a predetermined amount of money into a stock or cryptocurrency at regular intervals, regardless of price fluctuations. This approach helps mitigate the challenges and complexities of timing a highly volatile market, and is often endorsed by influential Bitcoin advocates as a more prudent alternative to active trading.
As indicated by the chart, the weighted average cost of acquired Bitcoin reached $31,233 on July 3. This figure represents the highest price level since June 2022.
Wicked explained that “When the entire orange line goes below the dotted white line, that’s when ALL daily DCA’ers are in profit.”
This does not imply that every Bitcoin holder has earned a profit, including those who acquired Bitcoin at $69,000 in November 2021 and made no further investments. Nevertheless, individuals who persisted with their recurring purchase strategy from that time up until the present have been able to recoup their losses by purchasing Bitcoin during low points, such as when it dropped below $16,000 following FTX’s collapse.
In a tweet on Monday, Saifedean Ammous, the author of “Bitcoin Standard,” stated “Regular stacking is profitable for everyone even when Bitcoin is down 55% from the top,” he also added, “An astonishing testament to Bitcoin’s power as a saving technology.”
With an 85.4% increase year to date, Bitcoin has experienced substantial growth. This growth can be attributed to a decrease in confidence in the banking system during March and the growing belief that a Bitcoin spot ETF will be approved in the United States, especially after BlackRock filed for one in June.
MicroStrategy has returned to profitability due to the impressive gains of its Bitcoin holdings. As one of the leading corporate Bitcoin holders, the company currently owns 152,333 BTC. These holdings were accumulated through a consistent series of purchases starting in August 2020. Michael Saylor, the Executive Chairman of MicroStrategy, is renowned for his advice to investors, encouraging them to hold onto their Bitcoin without selling.
