The Dollar-Cost Averaging (DCA) strategy appeals to many crypto investors. By regularly investing a fixed amount, they hope to smooth out market fluctuations and achieve a favorable average purchase price. However, some experts believe the DCA opportunity in bitcoin may soon disappear, leaving investors looking for new strategies to maximize their gains.
Already the end of the DCA for bitcoin?
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 of purchasing crypto. However, a reputable trader claims that the DCA moment in bitcoin has passed and will not return for at least a year and a half (18 months).
With Bitcoin's dominance reaching nearly 60% and price stagnation heading into 2024, many traders believe it is time to shift their accumulation strategy toward altcoins, which currently offer a risk/risk profile. more optimal return than bitcoin. Adam Cochran also expressed doubts about BTC's ability to outperform the rest of the market in the short term, citing potential benefits for other assets.
Future outlook
However, not everyone agrees with this pessimistic view. Kristin Smith, CEO of the Blockchain Association, declared that bitcoin's momentum is far from over. She predicts that BTC will reach $200,000 before dropping back to $50,000, representing a 108% increase from its current price.
Currently, bitcoin is trading at around $96,769and some analysts, such as Darkfost from CryptoQuant, believe that this area is favorable for implementing a DCA strategy. Additionally, the upcoming pro-crypto Donald Trump administration could trigger a new wave of BTC investments.
In sum, although some traders believe that the DCA opportunity in BTC has passed, others still see significant growth potential. The decision to use this strategy will depend on each bitcoin investor's individual outlook and risk tolerance.
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