Bitcoin remains a premier asset class and a form of hard money, making it an excellent candidate for Dollar-Cost Averaging (DCA) strategies. Investors who understand the importance of decentralized money, both as a store of value and a payment system, can benefit from this approach.
Two key metrics are valuable for implementing a stepwise approach to buying and selling Bitcoin. These metrics assess risk by comparing Bitcoin's price fluctuations to its Realized Cap, reflecting its true market value. They help identify opportunities for buying or selling based on undervaluation and overvaluation levels.
The Realized Cap Valuation metric is suited for users defining their own DCA timeframes. By analyzing price changes relative to the Realized Cap (RC) and applying various moving averages, investors can manage their stepwise purchases effectively.
The 60-Day Realized to Market Capitalization Variance (RCV) metric sets the timeframe based on bi-monthly changes in Bitcoinâs price and its Realized Value. This metric can be used for both stepwise buying and selling strategies.
Given Bitcoin's significant volatility, these metrics should aid decision-making rather than serve as sole determinants. Plan purchases and sales carefully following any decisions made.
