Investing for the long term is, in large part, the art of not confusing any individual signpost for the contour of the landscape itself. On that note, a lot of investors are fretting that Bitcoin (BTC +0.76%) has fallen below $90,000 after a weak 2025.
But I'm still accumulating it, and I'm not worried at all about this asset. Here are three reasons why.
Image source: Getty Images.
1. The long run is still the only period that counts
The first reason I'm not concerned about Bitcoin falling below $90,000 is that I plan on holding it for years, no matter what its price does in any given month. Turbulence along the way is to be expected.
For instance, Bitcoin closed at $16,646 on Dec. 17, 2022, which was approximately the nadir of the last big crypto bear market. Even after the coin's lackluster performance in 2025, today it's up by 428% compared to three years ago. Worrying about what it did over the last few months is a surefire way to erode your conviction and eventually set yourself up to sell your Bitcoin when it'd probably be better to just hold it. Price drops are just theoretical losses until you actually sell and lock in the lower prices forever.
CRYPTO: BTC
Key Data Points
The mechanism that makes holding this asset for the long term so appealing is the halving cycle. With each halving that passes, approximately once every four years, it gets dramatically harder to mine Bitcoin. That means that future buyers will be competing over a smaller pool of new supply, which tends to bias prices to the upside.
2. More Bitcoin is getting parked with owners who tend to hold firm
Another reason to stay calm right now is that Bitcoin's supply increasingly lives on the balance sheets of owners whose incentives lean toward holding it rather than selling.
Government entities, public companies, asset managers, and exchange-traded funds (ETFs) today account for just over 4 million BTC out of the asset's total possible circulating supply of 21 million BTC. Big holders can still sell if certain contingencies compel them to, but they are typically far less skittish than marginally attached retail investors looking for a quick crypto flip. If financial institutions or even central banks start to accumulate the coin to hold as reserves, it'll mark another completed expansion phase of Bitcoin's maturity as an asset, and that's likely right around the corner.
Furthermore, for the most part, the governments that are positioning to move forward on big, price-moving ideas like a Strategic Bitcoin Reserve (SBR) haven't actually started to implement their plans. When they do, you'll hear about it, and then even more Bitcoin will be taken out of circulation, potentially for years to come.
3. Macro liquidity can change the mood fast
The last reason I'm not worried at all about Bitcoin's dip is that it has a reputation for acting like a barometer for global liquidity.
In this context, you can think of "liquidity" as how easy it is for capital to move across the financial system. It's influenced primarily by central bank policy, credit creation, and the broad money supply, and, over a multi-year period, it tends to be fairly cyclical.
When liquidity increases, risk assets often benefit significantly, and Bitcoin is no exception. Given that the U.S. seems very likely to keep moving toward a more accommodative (looser) monetary policy stance over the next few quarters, liquidity will probably rise, and Bitcoin could catch a big tailwind.
Even if that doesn't happen in the near term, over the long term, another liquidity expansion is practically guaranteed. So, if you're consistently buying Bitcoin like I am, the purchases you made during times of thinning liquidity (like 2022, for instance) will end up being at very favorable price points.
When liquidity finally expands again, the buys made during tough times start to pay off -- and that's exactly what I expect to happen again within the next couple of years.
