Company adoption of bitcoin
BTC$104,468.67
is well-known, and most of it entails a traditional buy-and-hold technique, loosely analogous to the dollar-cost averaging (DCA) technique.
Whereas buyers of all types broadly choose DCA, new analysis by crypto choices market maker OrBit Markets reveals that since 2023, it has underperformed a structured product referred to as an “accumulator,” popularly often known as “I Kill You Later” in conventional markets.
“Our backtest outcomes present that the accumulator technique outperformed DCA over the previous 2.5-year interval,” mentioned Pulkit Goyal, head of buying and selling at OrBit Markets, instructed CoinDesk. “Three-month accumulators delivered a ten% outperformance, whereas longer tenors did even higher — six- and twelve-month accumulators outperformed by 13% and 26%, respectively.”
Goyal added that accumulators supply a disciplined, cost-effective strategy to token accumulation, making them “a pure match for crypto treasury corporations’ use case.”
Each DCA and the accumulator function the identical precept – cease timing the market. Whereas DCA simplifies investing by spreading out purchases over time, the accumulator helps purchase cash at a reduction in a structured setup and helps outperform DCA throughout bull runs.
Primer on accumulator
The accumulator is a time-structured product linked to the efficiency of an underlying asset with an upside knock-out barrier – stage, which, if hit, terminates the construction.
Right here is the way it works: An investor agrees to purchase a specific amount of the underlying asset at a hard and fast, discounted worth (the Strike) over common intervals, resembling every day or weekly, for a set interval.
The product runs via the pre-determined set interval until terminated early as a consequence of an early knock-out by the spot worth rising to the barrier.
Be aware that the investor has an obligation, not a alternative, to purchase the asset on the discounted strike worth and should double the purchase in case the spot worth dips beneath the discounted strike.
Instance of BTC accumulator
Contemplate a three-month accumulator the place an investor commits to purchase $1,000 price of BTC each week at a strike worth of $94,500, with a knock-out stage of $115,000.
The strike worth of $94,500 is 90% of the present spot worth of round $105,000. In different phrases, the investor is now mandated to snap up cash at a reduction, assuming the spot worth holds above the strike worth of $94,500 and beneath the knock-out of $115,000.
If BTC tops the knock-out stage, the construction is terminated.
If the worth falls beneath $94,500, the investor doubles the weekly buy to $ 4,000 on the similar strike, i.e., $94,500 – there is no such thing as a method out, which means the investor finally ends up shopping for at a worth greater than the prevailing market price. (because of this it will get the nickname “I kill you later.”)
Therefore, the accumulator isn’t appropriate for day merchants, short-term merchants and speculators and will not essentially outperform DCA in a bear market.
Backtesting
OrBit backtested a three-month BTC accumulator, spanning from January 2023 to June 13, 2025, assuming the investor constantly rolled into a brand new one upon reaching maturity or a untimely knock-out occasion.
Outcomes present a median BTC acquisition price of $39,035 for the accumulator, which is 10% decrease than the DCA common buy worth of $43,329. The DCA concerned investing a hard and fast greenback quantity in BTC each week.
Longer maturity accumulators of 6 and 12 months carried out even higher, attaining common prices of $37,654 and $32,079, respectively, outperforming DCA by 13% and 26%.
