Bitcoin DCA strategy from ATH would have generated profit, beat S&P 500

A daily $10 DCA strategy into Bitcoin since November 2021 has outperformed the S&P 500.

This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
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Quick Take

  • Bitcoin has endured a painful last 18 months, from the November 2021 high of roughly $69,000.
  • Looking at the market cap, Bitcoin had fallen as much as 75% from its all-time high – its fourth biggest drawdown in history.
  • However, the dollar cost average strategy (DCA) of putting $10 into Bitcoin daily since the ATH would result in a profit on the investment, based on Glassnode data analyzed by CryptoSlate.
  • The percentage return on investment with this strategy is around 10%, with a nominal return of roughly $500. This chart was created earlier in the week, so the return now may be slightly less as Bitcoin has dropped 2% since the chart's creation.
  • However, a $10 DCA into Bitcoin has outperformed the S&P 500, which is down 13% from its high back in November.
  • Taking the same approach with the S&P 500 would yield a flat return on investment.
DCA: (Source: Glassnode)
DCA: (Source: Glassnode)