What Was Happening in 2021
Bitcoin started 2021 at $33,140, already in the midst of a powerful bull run. The year brought two distinct peaks: $57,878 in April (fueled by the Coinbase IPO and growing institutional adoption), followed by a 39% crash to $35,040 in June, then a recovery to a new all-time high of $56,994 (monthly close) in November. El Salvador adopted Bitcoin as legal tender. Bitcoin ETF applications dominated financial news.
Starting a DCA in January 2021 meant buying at the top of a bull market. Your first purchases were at $33,140, $45,240, and $58,918. These felt great at the time but would soon be underwater. By mid-2022, Bitcoin was trading at $16,547, and every single purchase you'd made so far was at a loss.
This is the hardest DCA scenario: starting near a top and watching prices collapse. The only thing that saved 2021 starters was continuing to buy through 2022 and 2023 at dramatically lower prices.
The Crashes You Survived
Starting in 2021, you hit turbulence almost immediately. A 39% correction from $57,878 to $35,040 mid-year. Then the full 2022 bear market: Bitcoin dropped 71% from $56,994 to $16,547 as Terra/Luna imploded and FTX collapsed. The current correction from $115,758 to $68,000 is the most recent test. Your early purchases were deeply underwater for over a year. The DCA bought you out of that hole by accumulating cheap bitcoin through 2022-2023.
- Mid-2021 Correction: -39% ($57,878 to $35,040)
- 2022 Bear Market: -71% ($56,994 to $16,547)
- 2025-2026 Correction: -41% ($115,758 to $68,000)
Run your own scenario
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Open DCA Calculator →Ready to start your own plan? Read our Bitcoin savings plan guide. Wondering if you should invest all at once instead? See our DCA vs lump sum analysis. Not sure how much to allocate? Our sizing guide walks through practical frameworks.