March 28, 2024

Investments in bitcoin after 2017 could have gained 61.8% of profits

Researchers at Coin Metrics found that investors who used dollar-cost averaged Bitcoin investments(BTC) after the peak of 2017 at $ 20,000, shouldto be in the past. In addition, according to them, if the average investor would constantly buy BTC over the past three years, then the profit would have made up 61.8%.

Regardless of the fact that the price of bitcoin is significantdropped from $ 20,000, extremely low points were passed in 2019 and 2020. Experienced investors have been able to extract from these strong downstream tendencies a fair amount of solid profit.

«Despite the fact that Bitcoin is stilltrading 30% below its record high, the average dollar price since the market peak in December 2017 would have returned 61.8%, or 20.1% per annum. The same for Ethereum (71% below the peak value), the average dollar price since January 2018 would have brought 87.6%, or 27.9% per year.

In the early days of bitcoin existence, the well-knowninvestors and financial institutions have diversified in its life. Some companies referred to cryptocurrencies with critical optimism, but most of them were kept at a distance from the parent class of assets.

When with time after a sharp price adjustmentbitcoin has confidently increased to $ Z 150 and $ Z 600, the attitudes of investors have changed. In June, JPMorgan CEO, who publicly criticized bitcoin in 2018, announced that the leading cryptocurrency would be stable.

The JPMorgan strategy team, led by Joshua Younger and Nikolai Panigirtzoglo, have come to the conclusion that the March market drop will take a long time.

How the legendary investor billionaire Paul saidTudop Jones, bitcoin grows stronger every day. In comparison with other classes of BTC assets, it is relatively young, which makes it even more attractive for investors.

Durability, endurance and stabilityBitcoins allowed the digital asset to recover fairly quickly after large rolls. This cycle of high peaks and abnormally low lows makes the cost-effective method more profitable for bitcoin.

Data shows that Bitcoin price dynamics inIt is cyclical to a significant extent, which is an additional function that makes cost averaging more effective. The Coin Metrics announcement is confirmed by the fact that for the first time in history, the realized price of Bitcoin exceeded $6,000.

Realized price is an attempt to find out the price at which each investor bought bitcoins in the past.

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The base price of realizing a bitcoin indicates that the number of addresses that bought BTC at higher prices has increased. This signals the consumption of new investors, as the price of BTC has grown.

Modern metrics indicate that bitcoinGains strength as new capital flows. New investors with a long-term strategy can find the results of increasing the dollar cost very convincing.

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