Following the presidential election last November, Bitcoin's (BTC +4.63%) price soared 54% in just six weeks. After trading in a relatively narrow range through the first couple of months of 2025, the top crypto has trended downward. As of this writing, it's 20% off its peak price from January.
Bitcoin's price is currently under $90,000. Does this make the digital asset a smart buying opportunity for your portfolio? Let's take a closer look at the bear and bull arguments for Bitcoin.
Bitcoin has significant upside
Anyone who follows Bitcoin knows that its price goes through boom-and-bust cycles. Throughout its history, it hasn't failed to bounce back from lows to reach new highs. Over the short term, there will be volatility, but the price has increased in the long run.
We're almost 12 months past the most recent halving (April 2024). In the 12 to 18 months following previous halvings, Bitcoin has experienced strong bull markets. If history is any indication, the rest of this year could prove to be positive for the price.
Favorable regulatory actions, like the approval of spot ETFs and the White House's accommodative stance, have helped to reduce the stigma that has surrounded Bitcoin. Viewed as a less risky asset, this can bring in huge amounts of fresh buying power, whether from institutional investors, corporations, or even nation-states.
Given its fixed supply, only a max of 21 million Bitcoin units will ever be in circulation. Owning a hard asset like this is an extremely compelling proposition for investors. It operates in direct contrast to how the fiat money system works. The M2 money supply of the world's top four central banks has more than doubled in 15 years, thanks to expanding government debt. There is no end in sight to this trend.
Even after its monumental rise in the past 15 years, Bitcoin only represents less than half a percent of all the wealth in the world. Given its trajectory and recent developments working to its benefit, it's easy to believe that percentage will keep rising over time. This means Bitcoin still has tremendous upside from current levels.
CRYPTO: BTC
Key Data Points
Bitcoin still faces well-known risks
One of Bitcoin's best characteristics is that it's decentralized. In other words, no single entity has full control over it. People appreciate this because it means Bitcoin's software, and its rules, can't easily be changed to the benefit of a select few.
However, this setup could change for the worse. Large asset managers that sponsor Bitcoin spot ETFs collectively hold about $100 billion of the crypto. What's more, with the U.S. now planning to create a reserve, it's probably only a matter of time until other countries start doing the same. This introduces massive buyers to the market, which could result in Bitcoin ownership becoming more centralized over time.
Bitcoin's security is held up by public key cryptography. Unless handled carelessly by the owner, it's virtually impossible to crack this protocol. But there are fears about an up-and-coming technology that could undermine Bitcoin's security.
Quantum computing, no matter how many years away it is from going mainstream, can tackle complex problems much faster than the computers we have today. Just by raw force, it's possible that this could crack Bitcoin's cryptography, thereby exposing everyone's private keys and rendering the entire network worthless.
And lastly, despite the regulatory backdrop becoming more favorable, it's possible the next presidential administration will roll back the new pro-crypto policies. Changing rules and laws are always something to keep in mind.
Investors should always try to understand both sides of the argument, especially with a polarizing financial asset such as Bitcoin. I understand the risks present, but I still view Bitcoin as a solid long-term investment opportunity below $90,000 per unit. The bull case is more compelling.
