Is the End of Dollar-Cost Averaging (DCA) for Bitcoin Already Here?

The Dollar-Cost Averaging (DCA) strateg appeals to many crypto investors. By regularly investing a fixed amount, they hope to mitigate market fluctuations and achieve a favorable average purchase price. However, some experts believe that the opportunity for DCA in bitcoin may soon disappear, leaving investors searching for new strategies to maximize their gains.

Many crypto investors swear by the Dollar-Cost Averaging (DCA) strategy. They believe that by regularly investing a fixed amount, they can smooth out market fluctuations and achieve a favorable average purchase price. But what if the golden age of DCA is coming to an end?

At least one expert thinks so. But don’t despair yet, as the future of bitcoin (BTC) still looks bright.

Close to 83.5% of cryptocurrency investors have used the DCA strategy at some point, and 59% still use it as their primary method for purchasing cryptos, according to a recent survey. But one well-known trader claims that the time for DCA in bitcoin has passed and that it will not return for at least another year and a half (18 months).

The crux of his argument is that bitcoin’s dominance has become too overwhelming, leaving little room for further gains. Instead, he believes that investors should shift their focus to altcoins, which offer a better risk/reward trade-off. Adam Cochran also expressed doubts about BTC’s ability to out-perform the rest of the market in the short term, seeing potential advantages for other assets.

But not everyone shares this pessimistic view. The CEO of the Blockchain Association, Kristin Smith, thinks that the momentum for bitcoin is far from over. She predicts that BTC will reach $200,000 before falling back to $50,000, which would mark a 108% increase from its current price.

Currently, bitcoin is trading at around $96,769, and some analysts, like Darkfost from CryptoQuant, believe this area is favorable for implementing a DCA strategy. Moreover, the pro-crypto administration of Donald Trump could spark a new wave of investments in BTC.

So, while some traders may believe that the opportunity for DCA in BTC has passed, others still see potential for substantial growth. Ultimately, the decision to use this strategy will depend on individual outlooks and each bitcoin investor’s risk tolerance.