Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%


Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend.

Interestingly, despite the fact that the leading cryptocurrency is still trading 30% below its all-time high of $20,000, the dollar cost averaging from the peak of the market in December 2017 would have meant a return of 61.8% or 20.1% annually, noted Coin Metrics.

Dollar-cost averaging is an investment strategy in which an investor divides the total amount to be invested across the period to purchase the target asset to reduce the overall impact of volatility on the price of that asset and avoid putting all the investment amount at a poor time.

BTC Dollar Cost Averaging

Source: CoinMetrics

Meanwhile, as BTC reaches a 1-year high, the short-term holder MVRV, which assesses the behavior of short term investors by taking into account only those UTXOs younger than 155 days, remains bullish by keeping above 1.

“Coming from below 1 and reaching the current level (1.25), has previously marked the start of bull markets,” said Rafael Schultze-Kraft, CTO at Glassnode. And as long as MVRV stays above 1, one can remain bullish.

BTC Short Term Holder MVRV

Source: Glassnode

While one on one side, bitcoin’s price is aiming for $12,000 after closing above the important $10,500 level, on the other side, the realized price, which is realized cap divided by the current supply, has hit $6,000 for the first time.

This means, realized market cap continues to surge to all-time highs as well, hitting $111.2 billion, surging nearly 10% in 2020. Back in April, realized market cap fell to just under $101 billion, to early January 2020 levels.

Unlike market capitalization, where each bitcoin in circulation is multiplied by the current price, the realized cap has it multiplied by the price at the time it was moved last.

BTC Realized Price

Source: Glassnode

Not only is the current price is giving bullish signals, the realized BTC price is just another factor adding to all the bullishness.

It is not only the price of bitcoin that is enjoying an uptrend; the fundamentals of the world’s largest cryptocurrency are just as strong and continuing to grow.

Bitcoin user adoption is also pacing up as we have reported a 1-year active supply has already hit new ATH, and a 1-year active supply percentage is at 10-year lows. Hash rate and difficulty had been recovering for quite some time now, hovering around their all-time highs.

Another network fundamental, daily transactions, also recorded over $2.5 billion. The weekly transaction volume is almost $21.6 billion, with 2.2 million in transaction count, as per ByteTree.

Amidst this, the number of new addresses created is growing rapidly, reaching almost the peak of the 2017 bull market level of 1.29 million. Currently, sitting at June 2019 levels, on August 6th, 478,000 new BTC addresses were created.

Another bullish facet includes the number of bitcoin addresses holding at least $10 worth of the digital asset surging to a record high of 16.6 million, up 14% from previous a peak of 14.5 million in January 2018.

Bitcoin (BTC) Live Price

1 BTC/USD =$39,653.4633 change ~ 1.74%

Coin Market Cap

$744.28 Billion

24 Hour Volume

$23.99 Billion

24 Hour VWAP

$40.01 K

24 Hour Change

$688.52

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