Bitcoin Price Swings Test Dollar-Cost Averaging Strategy

Bitcoin's price swings have left many wondering if dollar-cost averaging remains the best strategy for buying Bitcoin. According to recent data, Bitcoin has swung 44% in just three months and is currently trading at around $83,070, which is about 34% below its October 2025 peak of $126,080.

One of the main arguments in favor of dollar-cost averaging is that it protects investors from making a single bad entry into the market. By spreading investments over time, investors can average out many prices and reduce their risk of being caught in a downturn.

However, research from Vanguard suggests that lump-sum investing may actually outperform dollar-cost averaging about two-thirds of the time. This is because markets tend to rise more often than they fall, and waiting for a better entry price can result in missing potential gains.

In fact, a recent 44% rally in Bitcoin's price would have been better for investors who lumped all their money into the market at once. Conversely, those using a scheduled buying approach would have accumulated more Bitcoin at lower prices during the decline, but these purchases will remain underwater until Bitcoin climbs back above its previous record high.