As per the data that is coming up, it is seen that the investors who engaged in dollar-cost averaging into Bitcoin since the time it peaked to $20,000 in 2017 are still in profits. The researchers have concluded that the investors who have been consistently investing in Bitcoin since the last three years would currently be enjoying the returns of 61.8 percent. Even though the price of Bitcoin has dipped significantly since its peak of $20,000 in 2017, it went through many extreme lows during the last three years. The investors who were smart enough to invest during these lows would be sitting on handsome returns presently.
Similar is the case with another popular altcoin – Ethereum. Even though it is priced 71 percent lower than its peak price, the investors who continued with dollar averaging over the last couple of years would be sitting on over 87.6 percent returns. When the Bitcoin first came into existence, most of the institutional investors and financial institutions had severe doubts regarding its survivability. It is for this reason most of the major financial organizations stayed away from investing heavily into cryptocurrencies. Many companies that did ventured into cryptocurrencies did so with lots of precautious.
The sentiment of investors towards Bitcoin has changed drastically in the last couple of years. It is because the crypto world has matured and the Bitcoin’s price has achieved stability too after witnessing high volatility over the years. Two of the financial strategists at JPMorgan, Nikolaos Panigirtzoglo and Joshua Younger, concluded the March crash clearly proved the survivability of Bitcoin. It is a relatively young asset-class, which attracts a lot of investors towards it. One of the legendary investors and billionaire, Paul Tudor Jones, once said “Bitcoin strengthens each day it survives.” It is completely true for Bitcoin as well as other altcoins in existence.
The staying power of Bitcoin as observed by most of the leading financial firms and analysts is what has allowed it to recover quickly after sharp downfall. It is this massive up and downs witnessed in Bitcoin trading are what make it extremely profitable for keen investors who are good at dollar-averaging. The available data also showcases that the pricing trends of Bitcoin are predictably cyclical. It is what makes the method of dollar-averaging even more profitable and effective for investors. It also shows that more and more new investors are entering the Bitcoin trading and investment space.