"Bitcoin Dip Buying Strategy More Effective Than Dollar-Cost Averaging"

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Summary

Analysis finds the Accumulator strategy, which buys during Bitcoin price declines, is more effective than dollar-cost averaging (DCA).
Orbit Markets reported that since 2023, the Accumulator strategy achieved excess returns of 10%, 13%, and 26% over 3, 6, and 12 months, respectively.
The Accumulator strategy is unsuitable for short-term investors, while most Bitcoin holding companies employ dollar-cost averaging strategies.

An analysis has found that the Accumulator strategy, which focuses on buying Bitcoin (BTC) when prices fall, is more effective than dollar-cost averaging (DCA).

According to CoinDesk on the 18th (local time), Orbit Markets stated in a report, "Our in-house tests show that since 2023, the Accumulator strategy has outperformed dollar-cost averaging.", adding, "The Accumulator strategy implemented over a 3-month period generated 10% excess returns compared to DCA, while over 6 and 12 months, it delivered 13% and 26% higher returns, respectively."

Meanwhile, the Accumulator strategy allows for regularly purchasing assets at prices lower than the market rate, but it has the characteristic of requiring you to double the purchase volume when prices decline. Therefore, this strategy is considered unsuitable for short-term investors. Most Bitcoin holding companies have also adopted approaches similar to dollar-cost averaging.

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