3 Reasons to Buy Bitcoin Before the End of the Year

Since Oct. 6, Bitcoin (CRYPTO: BTC) is down 25% from its all-time high of $126,000 as I write this on Nov. 18. As a result, the world's most popular cryptocurrency recently turned negative for the year, and skittish investors are already starting to bail.

But savvy, longtime crypto investors know the drill by now. Any time there is a significant drop in the price of Bitcoin, it's turned out to be a smart move to buy the dip. There's no guarantee the future will look like the past, but here are three reasons to buy Bitcoin before the end of 2025.

1. Market sentiment is a fickle beast

Admittedly, it's hard to press the "buy" button when market sentiment is this bad. The crypto "fear and greed index," which is measured on a scale of 0 (extreme fear) to 100 (extreme greed), now stands at 15, indicating a lot of fear. That's the lowest it's been since April, when the Trump administration rolled out significantly higher global tariffs.

But here's the thing: Market sentiment can often turn on a dime, especially in the crypto market. Unlike the stock market, where companies are valued according to specific metrics and well-known economic fundamentals, cryptocurrencies are largely valued according to perceptions and vibes.

Image source: Getty Images.

As a result, all it takes is one high-profile event -- such as a Fed rate cut -- to turn market sentiment around. That's exactly when Bitcoin could go on one of its epic year-end rallies. (Of course, these dynamics also mean that something unpredictable and unrelated to a crypto can push it down.) Based on the historical evidence, the fourth quarter is always the best quarter of the year for Bitcoin, and I'm fully expecting a rebound of some kind before the end of the year.

2. Nothing has fundamentally changed with Bitcoin

If you think about it, nothing has fundamentally changed with Bitcoin. Yes, there have been major outflows from the spot Bitcoin ETFs. But that's simply institutional investors responding to changes in the global macroeconomic outlook and retail investors reacting to the federal government shutdown.

Meanwhile, the pace of institutional adoption of Bitcoin continues to pick up. The U.S. government still plans to buy Bitcoin for its Strategic Bitcoin Reserve. The U.S. Congress is still working on comprehensive crypto market legislation that could pave the way for even more adoption of Bitcoin. And Bitcoin treasury companies are still buying Bitcoin, albeit at a slower pace. The global outlook for crypto has never been better.

Despite the growing fear in the crypto market about what happens over the short run, the long-term outlook for Bitcoin remains unchanged. Investors and analysts continue to bandy about $1 million price targets for Bitcoin. Bitcoin treasury companies continue to bang the drum for a higher Bitcoin price, and Wall Street analysts continue to issue optimistic price targets for Bitcoin. JPMorgan Chase, for example, recently suggested that Bitcoin could hit $170,000 within the span of 12 months.

3. Bitcoin's historical track record

Investors will have to decide for themselves if all the cheerleading for Bitcoin is based on strong conviction, or whether it just marks the last stage of a speculative bubble that has been expanding since 2023. Admittedly, there are some eerie parallels with November 2021, when Bitcoin hit a (then) all-time high of $69,000 before collapsing in value during a nearly year-long crypto winter. The same thing could easily happen again, especially if Bitcoin treasury companies start dumping their crypto holdings in order to raise cash.

But, at the end of the day, Bitcoin still has huge upside. The conventional wisdom is that Bitcoin could hit a price of $1 million by the year 2030, if not earlier. Given that Bitcoin has routinely turned in triple-digit performances since 2010, that's not entirely out of the question. Keep in mind: Bitcoin has only had three losing years (2014, 2018, and 2022) ever, so the historical evidence is very strong in favor of Bitcoin.

It's not an easy thing to do right now, but I'm planning on buying the dip on Bitcoin.

JPMorgan Chase is an advertising partner of Motley Fool Money. Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and JPMorgan Chase. The Motley Fool has a disclosure policy.