If you’ve been steadily accumulating bitcoin through daily recurring purchases to date, congratulations! According to a new analysis, your investment has officially turned a profit.
A tweet from bitcoiner @w_s_bitcoin (aka “Wicked”) on Monday highlighted a “weighted average cost of bitcoin purchased” chart showing that investors who continue to invest in the dollar cost average (DCA) in the largest crypto -Invest asset, call now Your strategy has been a success no matter when you started investing.
DCA is a strategy in which investors invest a fixed amount of money in a stock or cryptocurrency at regular intervals, regardless of the asset’s price changes. The practice intended to reduce the stress and complexity associated with timing a notoriously volatile market, and is often recommended by prominent bitcoiners as a smarter alternative to active trading.
According to the chart, the weighted average cost of Bitcoin purchased on July 3 was $31,233 — its highest price since June 2022.
“If the entire orange line falls below the dotted white line, ALL daily DCA users are in profit.” explained Mean.
That doesn’t mean all bitcoin holders are in the green, and certainly not those who bought for $69,000 in November 2021 and didn’t do anything after that. However, those who have continued to make recurring purchases from this point-to-date have recouped their losses by also buying during the lows, such as when Bitcoin broke below $16,000 after FTX’s demise.
“Regular stacking is profitable for everyone, even if bitcoin is down 55% from the peak.” tweeted Bitcoin Standard author Saifedean Ammous on Monday. “A stunning demonstration of the power of Bitcoin as a savings technology.”
Bitcoin is up 85.4% year-to-date, helped by dwindling confidence in the banking system in March and rising confidence in the likelihood of a Bitcoin spot ETF being approved in the United States since BlackRock submission in June.
The asset’s gains have also propelled MicroStrategy back into profitability. The company is one of the largest corporate owners of Bitcoin 152,333 BTC overall acquired through a series of recurring purchases since August 2020. The company’s CEO, Michael Saylor, is known for advising his followers never to sell their bitcoins.
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