Bitcoin (BTC +0.39%) has been one of the best-performing investments of all time. Countless millionaires have been minted throughout Bitcoin's historic rise. But after Bitcoin's price surpassed $100,000 last year, many investors are wondering if it's too late to jump in or add it to their positions. But a sudden pullback in 2025 has just provided a clear buying opportunity. And according to the one metric below, there could still be more a lot more upside to go for this popular cryptocurrency.
CRYPTO: BTC
Key Data Points
1 Reason Bitcoin still has more in upside
There's a lot to love about Bitcoin. Much of the optimism is built around its potential as a means of exchange. Hundreds of projects are being built right now that could create significant demand for Bitcoin as a means of exchanging value. That's especially true for Layer 2 projects like the Lightning Network that aim to make low-cost, mass volume Bitcoin transactions a reality. There's even talk that Bitcoin will eventually become the currency of choice for artificial intelligence (AI) agents, actors that could eventually transact billions upon billions of dollars in value every single day.
All of these potential growth drivers for Bitcoin demand may come to pass. But for now, it's still early. Data suggests that very few Bitcoin holders use it as a means of exchange, instead holding the cryptocurrency for speculative investment purposes.
Fortunately, Bitcoin doesn't need to become a global means of exchange to have significant value. Just take a look at gold. Gold is considered a store of value, not a means of exchange. You buy and hold gold for its ability to retain and increase in value over time, not for its ability to buy you a sandwich or fill your car up with gas. Yes, some of gold's value is derived from its utility. But just 11% of mined gold is used for industrial purposes. The rest is primarily used as a store of value investment.
Very rarely do new store of value investments come along. Bitcoin is one of the few. Its supply growth slows periodically, and by 2140, no more coins will be created. As it gains more credibility as a new asset class, expect it to close the gap with gold's valuation. Right now, gold has a global market cap of $21 trillion. Bitcoin's total value, meanwhile, hovers just below $2 trillion. Viewed simply as a store of value, then, Bitcoin has 10-fold in additional upside before it reaches gold's market value. All other demand drivers would add even more upside potential.
After the pullback, should you load up your portfolio with Bitcoin? You might be surprised at the answer.
Bitcoin Price data by YCharts
Should you buy Bitcoin right now?
Has there ever been a bad time to buy Bitcoin? Only if you failed to buy and hold for the long term. Nearly any investor -- even those who bought at the absolute peak of past cycles -- would have made a profit if they had only held on through the volatility.
Volatility should be expected for an emerging asset class like Bitcoin that is still building institutional buy-in. Just as smaller growth stocks will experience more volatility than their larger, more mature peers, expect Bitcoin to continue to be more volatile than gold. But as previous downturns have proven, you can take advantage of volatility to initiate or add to your Bitcoin position.
Long term, I expect the gap between Bitcoin and gold to narrow and eventually flip. But this process could take years or even decades, with huge up and down swings along the way. But take Bitcoin's history as a clue to how to profitably invest. As long as you keep an eye on the long term and are willing to add to your position during periods of weakness, it's possible to accumulate impressive generational wealth. If you have the stomach for it, investing in Bitcoin could be the smartest investment you ever make.
