Bitcoin DCA Strategy Offers Safety and Returns for Long-Term Holders, Data Shows

Dollar-cost averaging, or DCA, involves investing a fixed amount at regular intervals without trying to time the market. Investors buy more Bitcoin when prices fall and less when they rise, smoothing their average cost. Cointelegraph cited analyses from Newhedge and Swan Bitcoin showing that while the strategy cannot eliminate losses, it can reduce the risk of investing at a single point in time and may suit long-term investors able to withstand high volatility.

A March 5, 2026, report said Newhedge backtested weekly investments of $250 beginning in January 2021. Over five years, total contributions reached $67,500 and accumulated holdings stood at 1.65097905 BTC. At a Bitcoin price of $71,000, the position was valued at $120,518, representing a profit of $53,018 and a return of 76%. Bitcoin Well estimated that the position could reach $129,000 under its median scenario by March 2030.