• A $10 daily investment in Bitcoin has outperformed the S&P 500 since November 2021.
• This strategy has been successful due to its low risk and steady growth.
• The divergence between long-term and short-term holders could set up a bullish squeeze.
Bitcoin DCA Strategy Outperforms S&P 500
Investors have been searching for ways to make profits amidst the uncertainty of Bitcoin’s value, and data from Glassnode has revealed an interesting approach: a $10 daily investment in Bitcoin since November 2021 has resulted in positive returns that even outperform the S&P 500.
Why is this Investment Strategy Successful?
This strategy works by taking advantage of Bitcoin’s gradual yet steady growth over time. Even though it experienced a 75% drop from its all-time high, investors who take smaller investments each day can benefit from its slow but consistent rise over time while avoiding large losses that come with sudden price drops.
Bullish Squeeze on the Horizon
The divergence between long-term and short-term holders could also set up a bullish squeeze, which could lead to further gains for those who have invested in Bitcoin using this strategy. As more people hold onto their coins for longer periods of time, supply goes down while demand stays constant or increases, causing prices to go up.
Bitcoin Mempool Clearing Up
Additionally, the mempool is starting to clear as fee paid per block falls back to one BTC – helping reduce transaction costs and making it easier for people to make transactions with cryptocurrency.
Overall, this $10 daily investment strategy into Bitcoin since November 2021 has generated profit and outperformed the S&P 500 despite its volatile nature – proving that there are still ways to make money off of cryptocurrency without taking on too much risk. With the mempool clearing up and a potential bullish squeeze on the horizon, now may be a good time for investors to consider investing in Bitcoin using this method.