This Bitcoin Investment Method Could Soon Disappear
December 27, 2024
16h05 ▪
3
min read ▪ by
Eddy S.
The Dollar-Cost Averaging (DCA) strateg appeals to many crypto investors. By regularly investing a fixed amount, they hope to mitigate market fluctuations and achieve a favorable average purchase price. However, some experts believe that the opportunity for DCA in bitcoin may soon disappear, leaving investors searching for new strategies to maximize their gains.
Is the end of DCA for bitcoin already here?
According to a recent survey, approximately 83.5% of cryptocurrency investors have used the DCA strategy, and 59% still use it as their primary method for purchasing cryptos. However, a well-known trader claims that the time for DCA in bitcoin has passed and that it will not return for at least another year and a half (18 months).
With Bitcoin’s dominance nearing 60% and price stagnation at the end of 2024, many traders believe it’s time to pivot their accumulation strategy towards altcoins, which currently offer a more optimal risk/reward profile than bitcoin. Adam Cochran has also expressed doubts about BTC’s ability to outperform the rest of the market in the short term, citing potential advantages for other assets.
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Future Perspectives
However, not everyone agrees with this pessimistic view. Kristin Smith, CEO of the Blockchain Association, stated that the momentum of bitcoin is far from over. She predicts that BTC will reach $200,000 before falling back to $50,000, representing a 108% increase from its current price.
Currently, bitcoin is trading at around $96,769, and some analysts, like Darkfost from CryptoQuant, believe this area is favorable for implementing a DCA strategy. Moreover, the pro-crypto administration of Donald Trump could spark a new wave of investments in BTC.
In summary, although some traders believe that the opportunity for DCA in the BTC has passed, others still see significant growth potential. The decision to use this strategy will depend on individual outlooks and each bitcoin investor’s risk tolerance.
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Le monde évolue et l’adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m’intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l’optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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