Should You Buy Bitcoin Below $115,000?

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Bitcoin, the world’s leading cryptocurrency by market capitalization, has once again captured the attention of investors and financial observers in 2025. After a volatile start to the year—dropping below $40,000 amid high interest rates and macroeconomic uncertainty—Bitcoin demonstrated remarkable resilience. As inflation cooled and markets began pricing in potential rate cuts, Bitcoin surged alongside tech and growth equities, outpacing most of the broader crypto market.

The momentum accelerated following key political developments. After the election of Donald Trump as U.S. president, both Bitcoin and the wider digital asset sector experienced a sharp rally. Since early November, Bitcoin has climbed nearly 50%, surpassing $101,000 and approaching the $115,000 psychological threshold. This raises an important question for investors: Should you buy Bitcoin below $115,000? Let’s explore the fundamentals, market dynamics, and strategic considerations.

Growing Institutional Support and Regulatory Clarity

One of the most significant catalysts for Bitcoin’s recent performance is the evolving regulatory landscape in the United States. During his campaign, President-elect Trump actively courted the crypto community, pledging to transform the U.S. into the “crypto capital of the world.” This pro-innovation stance has instilled confidence among investors and industry leaders.

Trump has already nominated several known crypto advocates to lead key financial regulatory agencies. Notably, Gary Gensler, the current chair of the Securities and Exchange Commission (SEC), has announced plans to step down once the new administration takes office. Gensler’s tenure was marked by aggressive enforcement actions against crypto firms, which many in the industry viewed as overly restrictive. His departure could signal a shift toward clearer, more supportive regulations.

Faryar Shirzad, Chief Policy Officer at Coinbase, has expressed optimism about legislative progress under the new Congress. Two major bills are expected to gain traction: one aimed at establishing a comprehensive regulatory framework for digital assets, resolving longstanding legal ambiguities; and another focused on creating a licensing regime for stablecoin issuers. Stablecoins—digital currencies pegged to fiat like the U.S. dollar—are critical infrastructure for crypto markets, enabling liquidity and reducing volatility in transactions.

👉 Discover how regulatory shifts could unlock new opportunities in digital assets.

Bitcoin as Digital Gold: Scarcity and Inflation Hedge

Beyond regulation, Bitcoin’s core value proposition continues to strengthen. With a hard cap of 21 million coins and a halving mechanism that reduces new supply every four years, Bitcoin is inherently deflationary—a feature that resonates in inflation-prone economic environments.

Most of the total supply has already been mined, reinforcing its scarcity. This characteristic has led prominent voices to compare Bitcoin to gold. Even Federal Reserve Chair Jerome Powell recently acknowledged Bitcoin’s role as a “digital gold” in certain contexts—an unprecedented nod from a top central banker.

Institutional validation is also growing. BlackRock, the world’s largest asset manager, released a research report suggesting investors consider allocating up to 2% of a diversified portfolio to Bitcoin. While the report highlights risks such as price volatility and uncertain adoption trajectories, it underscores a broader trend: mainstream finance is beginning to treat Bitcoin as a legitimate store of value.

Market Dynamics: Momentum vs. Overvaluation?

Bitcoin’s rapid ascent raises concerns about overheating. At over $100,000, some analysts question whether current prices reflect fundamentals or speculative momentum. However, historical patterns suggest that Bitcoin often enters parabolic phases following halving events and periods of regulatory clarity.

The combination of reduced supply issuance, increasing institutional demand, and macroeconomic tailwinds—such as potential monetary easing—creates a favorable environment for continued appreciation. That said, short-term corrections are always possible due to Bitcoin’s inherent volatility.

For long-term investors, timing the market perfectly is less important than consistent participation. This leads to a critical strategy for entering or expanding exposure.

Dollar-Cost Averaging: A Smart Entry Strategy

Given Bitcoin’s volatility, trying to time the bottom or top is risky. Instead, dollar-cost averaging (DCA)—investing a fixed amount at regular intervals—can help smooth out purchase prices and reduce emotional decision-making.

For example, investing $500 monthly into Bitcoin over a year allows you to buy more units when prices dip and fewer when they rise, ultimately lowering your average cost basis. This disciplined approach aligns well with Bitcoin’s long-term upward trajectory while mitigating short-term risk.

👉 Learn how systematic investing can improve your crypto strategy.

Frequently Asked Questions (FAQ)

Q: Is $115,000 too high to buy Bitcoin?
A: While $115,000 may seem high historically, it depends on your investment horizon. For long-term holders who believe in Bitcoin’s scarcity and adoption potential, this level can still represent value—especially if macro conditions remain supportive.

Q: Could new regulations hurt Bitcoin?
A: While regulation can introduce compliance costs, clear rules often benefit mature markets by increasing institutional participation and reducing uncertainty. The current political climate suggests regulation will be balanced and innovation-friendly.

Q: How much of my portfolio should I allocate to Bitcoin?
A: Many financial advisors suggest 1–5% for most investors, depending on risk tolerance. BlackRock recommends up to 2% in diversified portfolios. Never invest more than you can afford to lose.

Q: What happens if Bitcoin fails to become widely adopted?
A: Adoption isn’t all-or-nothing. Even limited use as a reserve asset or inflation hedge could sustain value. However, lack of adoption would limit upside potential and increase volatility risk.

Q: Are there better alternatives to Bitcoin right now?
A: Bitcoin remains the most secure, liquid, and widely recognized cryptocurrency. While altcoins offer higher growth potential, they also carry greater risk. For core exposure, Bitcoin is still the preferred choice.

Q: What if interest rates go back up?
A: Rising rates typically pressure risk assets, including crypto. However, Bitcoin has shown increasing resilience in various rate environments. Its performance will depend on whether rate hikes are driven by growth or inflation concerns.

Final Thoughts: Positioning for the Future

Bitcoin stands at a pivotal moment. Regulatory winds are shifting favorably in the U.S., institutional interest is deepening, and its narrative as digital gold is gaining traction. While short-term price movements are unpredictable, the long-term fundamentals remain compelling.

Purchasing Bitcoin below $115,000 may seem daunting after its rally—but for investors with a multi-year horizon, it could still be an opportune entry point through disciplined strategies like dollar-cost averaging.

👉 Start building your crypto portfolio with confidence today.

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