In 2025, the cryptocurrency market is revitalized and vibrant. Bitcoin continues to reach new highs, capturing the attention of investors worldwide and proving that digital assets remain a force to be reckoned with.
However, while media headlines focus on the giants, savvy investors know there's more going on behind the scenes.
Should You Buy Bitcoin in 2025?
If you're wondering, "Should I buy Bitcoin now?" you're not alone. In June 2025, after a volatile first half of the year, Bitcoin traded above $106,000. Momentum was strong, but so was hesitation.
In 2025, spot Bitcoin ETFs gained traction, attracting billions of dollars in inflows. However, the inflows from institutional investors failed to allay broader concerns. Meanwhile, macroeconomic uncertainty, tightening liquidity, and increasing selling pressure from miners have kept retail investors cautious.
Key Points
Bitcoin Reserve is becoming a dominant force in the cryptocurrency market, and analysts expect this trend to continue in the second half of 2025. More spot cryptocurrency exchange-traded funds (ETFs) and cryptocurrency-related initial public offerings (IPOs) are also on the horizon.
Ether has lagged behind Bitcoin and many smaller crypto assets over the past few years, but some experts say it's not time to give up on the world's second-largest cryptocurrency.
Why Some Investors Remain Cautious
Bitcoin may lead the market, but not everyone is actively buying. Here are some reasons why some investors are sitting on the sidelines or reducing their holdings.
Volatility Remains High After the Halving
Despite Bitcoin's long-term gains, its short-term volatility has not diminished. Between March and May 2025, BTC fell over 17% in two pullbacks, despite ETF inflows and strong fundamentals. This level of price decline is not ideal for conservative investors or those with a shorter investment timeframe.
Three Actionable Recommendations
- Prioritize top-tier cryptocurrencies in asset allocation. Whether new or experienced, it's recommended to allocate at least 70% of your portfolio to cryptocurrencies with large market capitalizations, good liquidity, and solid underlying support, such as Bitcoin and Ethereum.
- Focus on portfolio hedging and fundamental research. Some funds with high risk appetite can invest a small portion (no more than 10%) in new models such as treasury companies, on-chain infrastructure, and other compliant and innovative assets. At the same time, they should closely monitor industry policies and regulatory trends.
- Principle of mandatory risk control and stop-loss. Choose funds/platforms with transparent risk control systems and avoid being tempted by pyramid scheme-like information. It is recommended to manage drawdown risk through phased position building and dynamic stop-loss and take-profit strategies.