Buying and selling Bitcoin (BTC 1.43%) has made some investors rich, considering that its value has surged 1,200% during the past six years. That means a previous $20,000 investment would be worth $260,000 now.
Those gains understandably cause some investors to wonder if buying Bitcoin today could set them up for life. Although Bitcoin has the potential to increase in value in the coming years, I think there are a few reasons it's unlikely to set you up for life. Here's why.
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An uncertain economy could stall Bitcoin's growth
When the economy is humming, borrowing costs are low, investments perform well, and the appetite for risk tends to be higher. When that happens, many investors feel more confident in buying riskier investments, such as cryptocurrencies.
But when economic indicators are murkier, or they turn negative, investors often flee in search of more stable investments. During the past year, we've already seen this shift happen with Bitcoin's value. Layoffs reached a five-year high in 2025, and some investors started to worry that job growth could continue to slow.
Those fears contributed to Bitcoin's value tumbling about 7% in 2025. And more pain could be on the way. Federal Reserve independence has been a cornerstone of the U.S. economic foundation for decades, but the Trump administration has consistently exerted pressure on the Fed to lower interest rates.
Recently, the pressure has escalated as the Department of Justice said that Federal Reserve Chairman Jerome Powell is under investigation for overspending on costs related to the renovation of the Fed's headquarters. Powell said the investigation is happening because he and the Fed haven't set interest rates based on "the preferences of the President."
The markets hate uncertainty, and so do cryptocurrency values. If investors start to worry that Fed independence is under threat, and it appears that it is, they could start heading for the exits in search of safer places for their money.
CRYPTO: BTC
Key Data Points
Astronomical gains from here will be difficult
Bitcoin's huge value increase during the past six years occurred, in part, as the stock market was booming and U.S. citizens received stimulus checks during the pandemic. Other contributors were the launch of Bitcoin exchange-traded funds (ETFs) and a general optimism in the market, thanks to surging artificial intelligence stocks.
Furthermore, the Trump administration eased certain regulations on cryptocurrencies and even established a Strategic Bitcoin Reserve, in which the U.S. government holds confiscated Bitcoin.
All the above have contributed to creating an environment that has enabled Bitcoin's value to rise rapidly. But with huge gains already achieved by these catalysts, it's unlikely for the cryptocurrency to see similar results in the coming years.
That doesn't mean Bitcoin's value won't rise; some analysts say that the cryptocurrency could reach $250,000 by 2028. But there don't seem to be the same accelerators in the economy and the market that helped push Bitcoin's value so high during the past few years. Bitcoin could continue to rise, but without new and significant drivers, it is unlikely to achieve the same gains.
It may not set you up for life, but Bitcoin could still be a good investment
Just because Bitcoin isn't likely to set you up for life at this point doesn't mean that it's not a good long-term investment. Bitcoin has proved many times that even amid significant pullbacks in its value, it has eventually rebounded and then gone higher.
More banks and financial institutions than ever offer Bitcoin exposure as well, with Morgan Stanley being the latest to give its stamp of approval for Bitcoin, as the bank recently filed paperwork to launch its own Bitcoin ETF.
With growing institutional adoption, owning some Bitcoin in your portfolio could be a smart move, just don't expect the same returns as the past few years.
