• Bitcoin DCA from ATH would have outperformed S&P 500
• BRC-20 tokens lost 600 million in market cap within four days
• Bitcoin drops to $26K as the result of Binance whales selloff
Bitcoin DCA Strategy Outperforms S&P 500
The recent downturn of the stock market has left investors searching for a profitable strategy amidst the uncertainty. A daily dollar-cost averaging (DCA) investment strategy into Bitcoin since November 2021 has been found to outperform the S&P 500 since it’s peak.
Binance Whales Selloff Causes a Drop in Bitcoin Price
As Bitcoin experienced a 75% drop from its all-time high, Binance whales took advantage and caused Bitcoin to drop further to $26K. This caused many investors to be concerned about their investments and look for alternative strategies that could generate returns.
Glassnode Data Reveals Positive Return with Dollar Cost Averaging Strategy
Glassnode data revealed that by investing $10 into BTC every day since its peak, investors were able to generate an unexpected positive return despite the drop in price. This method outperformed the S&P 500 which dropped 13% since November 2021.
Divergence Between Long & Short Term Holders Could Lead To Bullish Squeeze
As short-term holders continue to make profits on their holdings due to the declining trend of BTC, long term holders are still holding onto their coins causing divergence between them both groups. This could potentially lead to a bullish squeeze if more long-term holders decide to join back in on buying as prices recover.
Bitcoin Mempool Clears as Fee Paid Per Block Decreases Back To One
As demand decreases, so does fee paid per block required for miners when verifying transactions on the blockchain network. The mempool is now starting to clear up as this fee decreases back down towards one satoshi per byte indicating that demand is decreasing and fewer transactions are being processed on the network at present time.