Dollar-cost averaging Bitcoin from 2021 market top returns 107% Scott Melker, known as “The Wolf of All Streets,” recently highlighted the effectiveness of dollar-cost averaging (DCA) in Bitcoin investing, even for those who started at the market peak.
Investors who began purchasing $100 worth of Bitcoin weekly when it reached its previous all-time high of $69,000 would have invested a total of $15,200 over 152 weeks. Despite starting at the market peak, their position would now be worth $31,473, representing a 107.06% gain.
This strategy demonstrates Bitcoin’s potential for long-term investors, as it spends limited time at its highest prices and provides extended periods for accumulation during lower price ranges.
Bitcoin’s price history supports this approach. After reaching nearly $69,000 in November 2021, it experienced significant volatility, dropping below $20,000 by the end of 2022. However, 2023 saw a strong recovery, with Bitcoin ending the year at $42,258.
It continued its upward trajectory in early 2024, setting new all-time highs. On March 14, Bitcoin reached $73,600.
Melker’s analysis illustrates the potential benefits of consistent, long-term investment in Bitcoin, regardless of short-term market fluctuations. This approach aligns with the broader trend of increasing institutional interest and mainstream adoption of Bitcoin.
Analyst 
Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.