{"id":32433,"date":"2025-06-18T11:01:52","date_gmt":"2025-06-18T11:01:52","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=32433"},"modified":"2025-06-18T11:01:52","modified_gmt":"2025-06-18T11:01:52","slug":"bitcoin-accumulator-better-fit-for-corporates-than-dollar-cost-averaging-strategy-research-suggests","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=32433","title":{"rendered":"Bitcoin ‘Accumulator’ Better Fit for Corporates Than Dollar-Cost Averaging Strategy, Research Suggests"},"content":{"rendered":"
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Corporate adoption of bitcoin BTC is well-known, and most of it involves a classic buy-and-hold strategy, loosely analogous to the dollar-cost averaging (DCA) strategy.<\/p>\n

While investors of all kinds widely prefer DCA, new research by crypto options market maker OrBit Markets shows that since 2023, it has underperformed a structured product called an “accumulator,” popularly known as “I Kill You Later” in traditional markets.<\/p>\n

“Our backtest results show that the accumulator strategy outperformed DCA over the past 2.5-year period,” said Pulkit Goyal, head of trading at OrBit Markets, told CoinDesk. “Three-month accumulators delivered a 10% outperformance, while longer tenors did even better \u2014 six- and twelve-month accumulators outperformed by 13% and 26%, respectively.”<\/p>\n

Goyal added that accumulators offer a disciplined, cost-effective approach to token accumulation, making them “a natural fit for crypto treasury companies’ use case.”<\/p>\n

Both DCA and the accumulator operate the same principle \u2013 stop timing the market. While DCA simplifies investing by spreading out purchases over time, the accumulator helps acquire coins at a discount in a structured setup and helps outperform DCA during bull runs.<\/p>\n

Primer on accumulator<\/h4>\n

The accumulator is a time-structured product linked to the performance of an underlying asset with an upside knock-out barrier \u2013 level, which, if hit, terminates the structure.<\/p>\n

Here is how it works: An investor agrees to buy a certain amount of the underlying asset at a fixed, discounted price (the Strike) over regular intervals, such as daily or weekly, for a set period.<\/p>\n

The product runs through the pre-determined set period unless terminated early due to an early knock-out by the spot price rising to the barrier.<\/p>\n

Note that the investor has an obligation, not a choice, to buy the asset at the discounted strike price and must double the buy in case the spot price dips below the discounted strike.<\/p>\n

Example of BTC accumulator<\/h4>\n

Consider a three-month accumulator where an investor commits to buy $1,000 worth of BTC every week at a strike price of $94,500, with a knock-out level of $115,000.<\/p>\n

The strike price of $94,500 is 90% of the current spot price of around $105,000. In other words, the investor is now mandated to snap up coins at a discount, assuming the spot price holds above the strike price of $94,500 and below the knock-out of $115,000.<\/p>\n

If BTC tops the knock-out level, the structure is terminated.<\/p>\n

If the price falls below $94,500, the investor doubles the weekly purchase to $ 4,000 at the same strike, i.e., $94,500 \u2013 there is no way out, meaning the investor ends up buying at a price higher than the prevailing market rate. (this is why it gets the nickname “I kill you later.”)<\/p>\n

Hence, the accumulator is not suitable for day traders, short-term traders and speculators and may not necessarily outperform DCA in a bear market.<\/p>\n

Backtesting<\/h4>\n

OrBit backtested a three-month BTC accumulator, spanning from January 2023 to June 13, 2025, assuming the investor continuously rolled into a new one upon reaching maturity or a premature knock-out event.<\/p>\n

Results show an average BTC acquisition cost of $39,035 for the accumulator, which is 10% lower than the DCA average purchase price of $43,329. The DCA involved investing a fixed dollar amount in BTC every week.<\/p>\n

Longer maturity accumulators of 6 and 12 months performed even better, achieving average costs of $37,654 and $32,079, respectively,\u00a0outperforming DCA by 13% and 26%.<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Corporate adoption of bitcoin BTC is well-known, and most of it involves a classic buy-and-hold strategy, loosely analogous to the dollar-cost averaging (DCA) strategy. While investors of all kinds widely prefer DCA, new research by crypto options market maker OrBit Markets shows that since 2023, it has underperformed a structured product called an “accumulator,” popularly […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-32433","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/32433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32433"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/32433\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}