Most likely this is money laundering, whoever spends huge amounts of money to buy bitcoin at the rate of a million dollars a day surely knows a lot about bitcoin and the DCA strategy.
Also, it is unlikely that whoever has this huge money needed it to start a new investment or found a more profitable investment!!! It is not reasonable to lose 239 million dollars to start a new investment!!! This is suspicious and utterly stupid.
He might have sent the bitcoin to another wallet, as it is highly unlikely that he would have sold at such a large loss.
Topic: Failed DCA Strategy When Buying Bitcoin - page 5. (Read 960 times)
The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.
https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.
All I see is an unwise/inexperienced person trying to aggressively invest in Bitcoin if such is truly buying it newly but I doubt that. This person might already have his coins and trying to safely keep them in many other addresses. Regardless, educating ourselves on how to invest is so important, this is as reading the chart is vital so that we will not just be blind investors. Imagine someone started investing around the peak point of Bitcoin and continues to pump it despite the market being in a long-term bearish phase is foolishness.https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.
But thanks to Bitcoin, the monetary value could be lost for a long time through this, but in the end, such would still laugh if the coin could be kept untouched as the future of Bitcoin is getting more promising every day.
That said, the DCAing should also not be faulted here, there is no perfect approach for it, but one should be more speculative to know when it's a no-no to invest in the market at some times. These are times when the market is obviously bearish in trend.
he only went wrong when he decided to sell or continue DCA with poor planning. or it could be that there is an urgent need for him to sell the Bitcoin he owns even with the losses he already knows.
we will not know exactly what was planned. but what is clear is that he must have considered the loss when he had to sell the Bitcoin he had previously collected.
we will not know exactly what was planned. but what is clear is that he must have considered the loss when he had to sell the Bitcoin he had previously collected.
Might also not be an investor let alone a DCA investment. It may be a random person trying to use bitcoin transactions as a payment escape channel.
Sent up their format and wait for deposits (once, twice, thrice, maybe time to cash out)
Who knows he might have found a shit coin to perform pump and dump with his team and he was asked to sell at loss since he's gonna make the profits more in his new investment.
The DCA strategy, in my opinion, works because many people utilize it. That is usually used by experienced investors who have shown to make money. DCA, in my opinion, won't work if he did not understand how to read a market phase. If you use DCA during the distribution period, you will almost certainly lose a lot of money because the market's next move will be downward. As a result, if you use the DCA strategy to invest, you must also understand how to analyze the market to increase the probability of being profitable in the future.
He might have also sold out of panic of losing out or there was a necessity for him that requires him to go back to his bitcoin investment. That is why when one is accumulating his coins,he should have an emergency spending and also know about the market strategy to enable him overcome the challenges during the bear market. The worst of it is that if you sell due to panic or due to the fact that you invested all your funds on bit coin,when the price gets very dip,your might get discourage and sell off because of lack of knowledge on how to hold for long to make good profit. When holding for long,there is a time that you buy and the time to stop buying.
Investing a million everyday consistently means it is almost an amount that they can do without because they make more. A million sounds big but that is an amount of money that some people can keep in an investment daily, that can be a reason the investor decided not to reduce the money he was putting daily. If he has not yet become discouraged with this investment and sold it off at a loss, he will definitely make back his money when bitcoin becomes bullish. The key is to keep the bitcoins safe.
So many things would had happened in the situation and we aren't aware of, maybe he was given a wrong advise of buying bitcoin when he started that the price will rise the next year but the person giving the advice doesn't know how the market works. The inventors might be some old rich guy that's looking to double his money quickly and would had be disappointed after DCA didn't work for himself then quit.
If he wasn't looking for a quick profit, he won't have sold his Bitcoin instead continue holding and be buying more. Maybe it could be he has decided to cut his losses short and diverted the capital to other investment that he feels will give him more profit in the shortest time.
The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.
Investing a million everyday consistently means it is almost an amount that they can do without because they make more. A million sounds big but that is an amount of money that some people can keep in an investment daily, that can be a reason the investor decided not to reduce the money he was putting daily. If he has not yet become discouraged with this investment and sold it off at a loss, he will definitely make back his money when bitcoin becomes bullish. The key is to keep the bitcoins safe.making out such decision if they dont have that long term perspective which does simply means that he has really that confidence with it. It might be looking some sort of error or mistake but we arent
that blind on how Bitcoin did fly with colors specially when bull run kicks in. In order for someone to gain then it would really be just that normal for you to need up to risks.
You wouldnt gain nothing if you wont do nothing.
People would be just simply be amazed and would be focused into someone who do make out huge gains on the time that bull run do happen. This is why its better to mind our own
and not really that too judgmental on whatever these millionaires been doing with their investment decisions. They wouldnt really be making such step
if they wouldnt really be having those considerations.
The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.
Investing a million everyday consistently means it is almost an amount that they can do without because they make more. A million sounds big but that is an amount of money that some people can keep in an investment daily, that can be a reason the investor decided not to reduce the money he was putting daily. If he has not yet become discouraged with this investment and sold it off at a loss, he will definitely make back his money when bitcoin becomes bullish. The key is to keep the bitcoins safe. 
The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.
https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received: 17,536.2628 BTC (517 ins) first: 2021-07-25 last: 2022-12-28
Sent: 17,536.2628 BTC (517 outs) first: 2023-01-01 last: 2023-03-05
Profit from price change: -239,395,601.9 USD
Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.
https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received: 17,536.2628 BTC (517 ins) first: 2021-07-25 last: 2022-12-28
Sent: 17,536.2628 BTC (517 outs) first: 2023-01-01 last: 2023-03-05
Profit from price change: -239,395,601.9 USD
Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.
Different people have different opinions and it doesn't matter if the current value of his investment is low.
It would definitely increase by a lot when the price of bitcoin increases and since he would have a good average price by then, his investment would yield him nice returns.
Timing matters in any kind of investment but DCA is a great strategy if we invest for a long term.
Hmm, lot of calculations goes into the DCA. To work on it technically we need to understand how much he sold, how much he bought back from the same money that is compounding. If they have done compounding investment which is buying from the profit + principle amount they are actually way profitable than what we think. If we just going to see a overview such as buying and selling at different prices then that’s going to mess up all the calculations for sure.
Adding more comments from above posts such as cold storage movement etc the math never adds up. May be the actual profits data could only be shared by owner of that address.
Adding more comments from above posts such as cold storage movement etc the math never adds up. May be the actual profits data could only be shared by owner of that address.
The owner of this address bought a million dollars worth of Bitcoin every day from August 11, 2021 to January 1, 2023.
https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received: 17,536.2628 BTC (517 ins) first: 2021-07-25 last: 2022-12-28
Sent: 17,536.2628 BTC (517 outs) first: 2023-01-01 last: 2023-03-05
Profit from price change: -239,395,601.9 USD
Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.
https://bitinfocharts.com/bitcoin/address/bc1qw0pswznckx7s6tjmd2f5hrx4q6kc5nyrdxku50
Received: 17,536.2628 BTC (517 ins) first: 2021-07-25 last: 2022-12-28
Sent: 17,536.2628 BTC (517 outs) first: 2023-01-01 last: 2023-03-05
Profit from price change: -239,395,601.9 USD
Approximately $460 million was spent buying Bitcoin, resulting in a loss of over $239 million. Perhaps this investor did not know that the DCA strategy is better to use for a longer period, or perhaps he found a more profitable investment.
Talking about this kind of experience whereby an investor made a high and long term volume of purchase on bitcoin than taking the DCA method for his purchasing pattern, the two have an advantage and disadvantages but we have to considers the volume and quantity of purchase made here, if he continues to wait in using a DCA pattern he may not achieved a uniformity in his buying price especially when the market price is already bearish, buying much at once is a good idea because the price will also rise with time.
If it was then in time of uncertainties whereby you buy and the market goes more dip, you would have loose some amount because DCA method is best for this kind of situation, but the overall opportunity is if you can hodl for long, till after the next halving, there's high probability for you to make more money.
I see this was also discussed on reddit a few months ago. I would not say that this is a "failed DCA strategy" of an individual, most likely it is a fund of some sort or even cold storage that is being moved to another wallet. I would assume that the movement was initiated by someone accessing the funds and moving them manually, or some automated process (this would explain why it was moving in chunks rather than all at once). Besides, the entire fund is still sitting at the new addresses and has not been moved to any wallets of known exchanges, so I think it is wrong to assume that the Bitcoins have been sold.
All in all, OP, I think your statement about "failed" DCA strategy is misleading to say the least. There are many other possible explanations for what happened here. How do you know that Bitcoins were actually sold? No clear evidence exists in the blockchain of any such sale. So, I think it's pretty clear that there was no sell-off and the coins were simply transferred to new addresses, possibly as part of an update to improve security.
All in all, OP, I think your statement about "failed" DCA strategy is misleading to say the least. There are many other possible explanations for what happened here. How do you know that Bitcoins were actually sold? No clear evidence exists in the blockchain of any such sale. So, I think it's pretty clear that there was no sell-off and the coins were simply transferred to new addresses, possibly as part of an update to improve security.
By the way, a lot of coins were sold on March 5, when bitcoin was worth $22,350. But after the sale, the price of bitcoin fell to 20,000 thousand dollars. The investor could lose even more than 10% of the capital. Bitcoins were most likely not sold on an exchange, but on a closed trading platform for whales.
This was probably not the last money, and if an investor spent 2-10% of his capital to buy bitcoin, then we see that billionaires also have losses.
I cants count this as a lose yet if he decided to hold his Bitcoin for a very long time. Accumulating Bitcoin is one of the best thing to think about when we want a long time investment. Although it might look like he is in loses now but I don't think so because holding for a very long time might be the reason for buying and accumulating. It is very important for us to do some research on Bitcoin timing to know when the market could fall or go up. This was probably not the last money, and if an investor spent 2-10% of his capital to buy bitcoin, then we see that billionaires also have losses.
I am sure that there are so many accurate speculations outside there that can direct us on when to buy and when to sell so that we can be guided and not to make a mistake of buying before the market falls.
Bitcoin was bought for 11 months for more than $30,000 and for 6 months for less than $30,000. If bitcoin purchases continued in 2023, then the strategy could have yielded results, but everything was spoiled by purchases of bitcoin more than $ 50,000
When miners make a big profit due to the difference between the price of mining a coin and the sale price, then you can’t buy.
DCA doesn’t always work. If you use dca to enter and exit trades then it won’t help you in the bottoms and tops. If you spend too much time buying at the top or selling at the bottom then you would be better off just buying everything at once.
It’s not a full proof strategy. When Bitcoin went below $20k, I bought a lot. I didn’t dca because I knew it wouldn’t stay below $20K for long and I would be buying it at a higher price which is what happened. Same when it was over $50K, just sold everything pretty much because I knew the top was near.
It’s not a full proof strategy. When Bitcoin went below $20k, I bought a lot. I didn’t dca because I knew it wouldn’t stay below $20K for long and I would be buying it at a higher price which is what happened. Same when it was over $50K, just sold everything pretty much because I knew the top was near.
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The logic here is very simple, as long as the holdings of bitcoins accumulated or accumulated through DCA are not sold, even if their value drops or stumbles a lot in the market, it cannot be said that he has lost or lost. in saving Bitcoin.
Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.
If he sent his bitcoins to another wallet and it stayed there during the bull run waiting period and still did DCA during this time, he would make a big profit. We also don't know if it was sold or transferred to another wallet. But what is certain is that we must keep doing DCA before the price increases again (although now bitcoin price has started to increase) and not focus on just seeing what other people are doing. We can miss doing DCA if we compare one wallet to another while we haven't managed to collect a lot of bitcoins in this waiting period. So use this waiting period to our advantage. Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.
I believe that this is not the only Bitcoin wallet address of this person, what if there are still a lot of Bitcoin addresses of this? Because if you got a lot of money like this, you are smart enough not to store them in just 1 wallet or address, to be more safety.
Just a heads up that distributing bitcoin/crypto holdings over multiple wallet addresses doesn't necessarily mean it'll be more secure, as you could be just splitting up risk. Sometimes, it's better to put all your eggs in one basket and watch that basket carefully.
I believe that this is not the only Bitcoin wallet address of this person, what if there are still a lot of Bitcoin addresses of this? Because if you got a lot of money like this, you are smart enough not to store them in just 1 wallet or address, to be more safety.
But if we only base on this Bitcoin address, yes it's really huge loss for this address. But we'll never know what is the strategy of this Bitcoin address owner.
But if we only base on this Bitcoin address, yes it's really huge loss for this address. But we'll never know what is the strategy of this Bitcoin address owner.
The logic here is very simple, as long as the holdings of bitcoins accumulated or accumulated through DCA are not sold, even if their value drops or stumbles a lot in the market, it cannot be said that he has lost or lost. in saving Bitcoin.
Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.
Yes, as long as you don't sell it, the assets will remain but only the value will decrease. Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.
If it is said that it fails, then it is not true. DCA will provide more asset accumulation with different price values.
Bitcoin is indeed volatile, not even just bitcoin, all altcoins will be more volatile because they are influenced by Bitcoin.
The price movement that continues to fall provides a good opportunity to start buying, and doing DCA with funds that have been provided from the beginning.
Then hold for the long term. Then the profit will be more if the main price target has been reached.
They must be prepared for all conditions in the crypto market.
The logic here is very simple, as long as the holdings of bitcoins accumulated or accumulated through DCA are not sold, even if their value drops or stumbles a lot in the market, it cannot be said that he has lost or lost. in saving Bitcoin.
Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.
Because we know that Bitcoin is volatile, and its holder must understand this, and they must also be long term holders who do not care about the price movements that happen in the market because they have a time frame when to sell it.
The mistake is that he did not knew that 2022 will never be a good year for bitcoin and all other cryptocurrencies, but if you go back to history, we know that history will juxtapose into the future which was what happened again in 2022 just like 2018 when the price of all coins crashed.
He continued DCA at the wrong time and sold at the wrong time when he supposed to buy more or wait. Supposing he is able to wait again till 2024/2025 he would have gained massively.
In anything we are investing on, we should learn more about it before investing at all.
He continued DCA at the wrong time and sold at the wrong time when he supposed to buy more or wait. Supposing he is able to wait again till 2024/2025 he would have gained massively.
In anything we are investing on, we should learn more about it before investing at all.
Obviously looks like this investor don't have a proper plan to manage his Bitcoin investment or have good knowledge about investment in Bitcoin, someone investing with such an huge amount of money needs proper Bitcoin education,I guess he wouldn't have sold at where he should have hold except if had some problem he needed money to sort himself out. Had this exact experience during my first time investing in Bitcoin, some time around 2017, I bought at the top and sold at low price because I didn't know anything as of then.
Lastly Patient is another key thing we need even when market goes against you because it will definitely go against you as point.
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