Investments in bitcoin after 2017 could bring 61.8% of profit.
Researchers at Coin Metrics found that investors who used the average dollar value to Investments in bitcoin (BTC) after the 2017 peak of $20,000 should be in profit. In addition, in their opinion, if the average investor had constantly bought BTC over the past three years, then the profit would have been 61.8%.
Despite the fact that the price of bitcoin fell significantly from $20,000, extremely low points were passed in 2019 and 2020. Experienced investors could derive fairly solid returns from these strong downward trends.
“Despite the fact that bitcoin is still trading at Z0% below its record high, the average dollar value from the peak of the market in December 2017 would bring 61.8%, or 20.1% per annum. To according to Ethereum (below the peak value by 71%), the average dollar value from January 2018 would bring 87.6%, or 27.9% per year. “
In the early days of bitcoin, well-known investors and financial institutions doubted its viability. Some companies were cautious about cryptocurrencies, but most kept their distance from the nascent asset class.
When, over time, after sharp adjustments, the price of bitcoin confidently recovered to $150 and $600, investor sentiment changed. In June, the CEO of JPMorgan, who publicly criticized bitcoin in 2018, said that the leading cryptocurrency has stability.
A team of JPMorgan strategists led by Joshua Younger and Nikolaos Panigirtzoglo concluded that the March fall in markets showed the durability of bitcoin.
As legendary billionaire investor Paul Tudor Jones said, bitcoin strengthens every day. Compared to other classes of BTC assets, it is relatively young, which makes it even more attractive to investors.
The durability, endurance and stability of bitcoin allowed the digital asset to recover quite quickly after large kickbacks. This cycle of high peaks and extremely low lows makes cost averaging a profitable method for Investments in bitcoin.
The data show that the dynamics of bitcoin prices are largely cyclical, which is an additional function that makes averaging costs more efficient. The announcement of Coin Metrics is confirmed by the fact that for the first time in history, the sold price of bitcoin exceeded $6000.
The sold price is an attempt to find out the price at which each investor bought bitcoins in the past.
The record sale price of bitcoin indicates that the number of addresses that bought BTC at higher prices has increased. This signals an influx of new investors as the BTC price has risen.
Onchein metrics indicate that bitcoin is gaining strength as new capital arrives. New investors with a long-term strategy can find the results of averaging the dollar value very convincing.