A five-year dollar-cost averaging strategy for Bitcoin has yielded a 72% profit for investors, outperforming traditional market options.
An analysis of the dollar-cost averaging (DCA) strategy for Bitcoin reveals substantial returns over the past five years. Investors who consistently bought Bitcoin at a fixed amount, regardless of price fluctuations, have seen impressive gains.
For instance, someone investing $250 weekly since January 2021 would have contributed a total of $65,500. This strategy would have led to the acquisition of approximately 1.59 BTC at an average price of $41,027. With Bitcoin currently valued around $70,700, this portfolio is estimated to be worth $112,920, yielding a remarkable profit of 72.4%.
Forecasts suggest that by October 2025, when Bitcoin prices may reach approximately $126,000, the asset's value could increase to $187,500.
In contrast, a simple buy-and-hold strategy over the same period would have produced an average annual return of 18%.
Shorter investment periods show different results. For example, if investments began in January 2024 with weekly contributions of $250, the total would be $26,250, acquiring about 0.33 BTC at an average price of $77,247. Currently, this portfolio is valued at around $24,000, reflecting an 8.3% loss. However, should Bitcoin recover to $100,000, the value could rise to $33,900, peaking at $38,500.
Comparative Performance with S&P 500
In a recent assessment, Swan Bitcoin analyst Adam Livingston highlighted the performance of DCA for Bitcoin compared to the S&P 500 over five years. He noted that Bitcoin has outperformed the S&P 500, despite two significant price drops during the period.
The S&P 500 has now outperformed Bitcoin by over 4x in the last 5 years.
Even after 2 massive Bitcoin crashes in the last 5 years, you still would have outperformed the S&P by almost 20% by DCAing.
$100 DCA:
SPY: $37,470 (profit +$11,370, +43.6%)
Bitcoin: $42,508 (profit… pic.twitter.com/BoBK5zRwlT
— Adam Livingston (@AdamBLiv) February 19, 2026
With a $100 weekly investment, Bitcoin yielded $42,508 compared to $37,470 for the S&P 500, resulting in returns of 62.9% versus 43.6%. Livingston emphasized that consistently purchasing Bitcoin during market dips has historically led to better cumulative returns despite its volatility.
When increasing the weekly investment to $250, Bitcoin continued to outperform the S&P 500, although gold remains the top performer in this comparison. Recently, Bitcoin's price surpassed $74,000, marking a significant rebound after a month of lower values.
