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Yahoo
a day ago
- Business
- Yahoo
Bitcoin 'Accumulator' Better Fit for Corporates Than Dollar-Cost Averaging Strategy, Research Suggests
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 known as "I Kill You Later" in traditional markets. "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 — six- and twelve-month accumulators outperformed by 13% and 26%, respectively." Goyal added that accumulators offer a disciplined, cost-effective approach to token accumulation, making them "a natural fit for crypto treasury companies' use case." Both DCA and the accumulator operate the same principle – 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. The accumulator is a time-structured product linked to the performance of an underlying asset with an upside knock-out barrier – level, which, if hit, terminates the structure. 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. 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. 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. 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. 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. If BTC tops the knock-out level, the structure is terminated. If the price falls below $94,500, the investor doubles the weekly purchase to $ 4,000 at the same strike, i.e., $94,500 – 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.") Hence, the accumulator is not suitable for day traders, short-term traders and speculators and may not necessarily outperform DCA in a bear market. 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. 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. Longer maturity accumulators of 6 and 12 months performed even better, achieving average costs of $37,654 and $32,079, respectively, outperforming DCA by 13% and 26%.
South China Morning Post
13-06-2025
- Business
- South China Morning Post
Bitcoin, other cryptocurrencies sink as Israel escalates Iran stand-off with air strikes
Advertisement The largest digital asset slid as much as 3 per cent on Friday morning in Singapore to dip below US$103,000 before paring losses, according to data compiled by Bloomberg. Second-ranked token ether had at one point shed about 7.6 per cent of its value. The sell-off came after explosions were heard in Tehran, according to local media. Israeli Defence Minister Israel Katz said he was declaring a special state of emergency due to Israel's 'pre-emptive strike against Iran'. Israel is anticipating a retaliatory drone and missile attack, Katz said. Advertisement 'Cryptocurrency is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,' said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. 'We expect to see technical support around US$101,000, but geopolitical news will drive price action from here in the short-term.'
Economic Times
13-06-2025
- Business
- Economic Times
Bitcoin sinks as Israel escalates Iran standoff with airstrikes
Bitcoin and other cryptocurrencies experienced a sharp decline following Israeli airstrikes on Iran, reflecting broader market anxieties. The largest digital asset dipped below $103,000, while Ether also saw significant losses. Investors sought safe-haven assets like Treasuries, and over $1 billion in long crypto positions were liquidated amid the escalating geopolitical tensions. Tired of too many ads? Remove Ads Crypto TrackerPowered By TOP COINS TOP COIN SETS BNB 55,909 ( -2.16 %) Buy Bitcoin 89,75,043 ( -2.77 %) Buy XRP 181.55 ( -5.68 %) Buy Ethereum 2,16,389 ( -8.66 %) Buy Solana 12,413.39 ( -8.91 %) Buy Bitcoin and other cryptocurrencies sank after Israel launched airstrikes on Iran in a major largest digital asset slid as much as 3% on Friday morning in Singapore to dip below $103,000 before paring losses, according to data compiled by Bloomberg. Second-ranked token Ether had at one point shed about 7.6% of its selloff came after explosions were heard in Tehran, according to local media. Israeli Defense Minister Israel Katz said he's declaring a special state of emergency due to Israel's 'preemptive strike against Iran.' Israel is anticipating a retaliatory drone and missile attack, Katz said.'Crypto is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,' said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. 'We expect to see technical support around $101,000, but geopolitical news will drive price action from here in the short-term.'Stocks fell along with equity-index futures while investors rushed to the safety of havens such as Treasuries in the immediate aftermath of the strikes. Crude oil jumped more than 9% while gold also decline shows that while it has 'occasionally traded as a macro hedge, in moments of acute risk like this one, particularly involving kinetic military conflict, liquidity is prioritized over narrative,' said Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX Ltd. 'Traders raise cash, rotate into dollars, and reduce leveraged or volatile exposure.'Over $1 billion dollars' worth of long positions across all cryptocurrencies were liquidated in the past 24-hours, according to Coinglass Sycamore, market analyst at IG, said in a note that 'a further deterioration in risk sentiment' is likely ahead of the was trading at $103,540 as of 10:40 a.m. in Singapore on Friday.
Free Malaysia Today
13-06-2025
- Business
- Free Malaysia Today
Bitcoin sinks as Israel escalates Iran standoff with airstrikes
The crypto market reacted to Israel's strikes on Iran with losses, as technical support expected near US$101,000. (EPA Images pic) SINGAPORE : Bitcoin and other cryptocurrencies sank after Israel launched airstrikes on Iran in a major escalation. The largest digital asset slid as much as 3% on Friday morning in Singapore to dip below US$103,000, while smaller cryptocurrencies nursed steeper losses, according to data compiled by Bloomberg. Second-ranked token Ether at one point shed about 6.9% of its value. The losses came after explosions were heard in Tehran, according to local media. Israeli defence minister Israel Katz said that he's declaring a special state of emergency due to Israel's 'preemptive strike against Iran.' Israel is anticipating a retaliatory drone and missile attack, Katz said. 'Crypto is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,' said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. 'We expect to see technical support around US$101,000, but geopolitical news will drive price action from here in the short-term.' Stocks fell along with equity-index futures while investors rushed to the safety of havens such as Treasuries in the immediate aftermath of the strikes. Crude oil jumped more than 9% while gold also rose. 'While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend,' Tony Sycamore, market analyst at IG, said in a note. Bitcoin was trading at US$103,130 as of 9:40am in Singapore on Friday.
The Star
13-06-2025
- Business
- The Star
Bitcoin sinks as Israel escalates Iran standoff with airstrikes
A visual representation of the virtual currency bitcoin. — AFP Bitcoin and other cryptocurrencies sank after Israel launched airstrikes on Iran in a major escalation. The largest digital asset slid as much as 3% on Friday morning in Singapore to dip below $103,000 before paring losses, according to data compiled by Bloomberg. Second-ranked token Ether had at one point shed about 7.6% of its value. The selloff came after explosions were heard in Tehran, according to local media. Israeli Defense Minister Israel Katz said he's declaring a special state of emergency due to Israel's "preemptive strike against Iran.' Israel is anticipating a retaliatory drone and missile attack, Katz said. "Crypto is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,' said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. "We expect to see technical support around $101,000, but geopolitical news will drive price action from here in the short-term.' Stocks fell along with equity-index futures while investors rushed to the safety of havens such as Treasuries in the immediate aftermath of the strikes. Crude oil jumped more than 9% while gold also rose. Bitcoin's decline shows that while it has "occasionally traded as a macro hedge, in moments of acute risk like this one, particularly involving kinetic military conflict, liquidity is prioritised over narrative,' said Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX Ltd. "Traders raise cash, rotate into dollars, and reduce leveraged or volatile exposure.' Over $1 billion dollars' worth of long positions across all cryptocurrencies were liquidated in the past 24-hours, according to Coinglass data. Tony Sycamore, market analyst at IG, said in a note that "a further deterioration in risk sentiment' is likely ahead of the weekend. Bitcoin was trading at $103,540 as of 10:40 a.m. in Singapore on Friday. - Bloomberg
