Should You Buy Bitcoin While It's Under $125,000?

Things are not looking good for Bitcoin (CRYPTO: BTC) right now. While it's up a modest 5% in 2026, it's still more than 25% below its all-time high of $126,000 from October. And Bitcoin has yet to crack the $100,000 price level this year.

But no worries. Bitcoin looks amazingly cheap at a price of $93,000. Long-time Bitcoin investors know exactly what to do right now: Buy the dip.

Catalysts for Bitcoin in 2026

If Bitcoin is going to rally hard in 2026, it's going to need some serious catalysts. For now, I'm discounting all the generic catalysts related to the overall macroeconomic situation, such as the potential for the Federal Reserve to lower interest rates this year. Most likely, these rate cuts have already been priced in.

Image source: Getty Images.

Instead, I'm focused specifically on catalysts that are crypto- and Bitcoin-specific. New crypto market structure legislation, in the form of the Digital Asset Market Clarity Act, should give the crypto market a boost.

However, I'm not so sure how much this piece of legislation will help Bitcoin specifically. Perhaps it will make it easier for financial institutions and corporations to hold Bitcoin on their balance sheets, but the crypto legislation is likely to have a far bigger impact on more speculative altcoins.

The one catalyst, though, that could really give Bitcoin a jolt of energy is a decision by the U.S. Treasury to boost its Bitcoin holdings via the Strategic Bitcoin Reserve. Right now, this reserve only includes Bitcoin that has been seized or confiscated. But the U.S. government has specifically suggested that buying new Bitcoin might be possible if a "budget-neutral" way can be found to do so.

In early January, Cathie Wood of Ark Invest suggested that a move by the U.S. Treasury to boost the Strategic Bitcoin Reserve could come ahead of this year's bitterly contested midterm elections. A higher Bitcoin price could grease the skids for pro-crypto politicians aligned with the Trump administration.

If all goes according to plan, ramped-up buying of Bitcoin by the Treasury Department will set off a cascade effect around the globe, potentially igniting a "Bitcoin arms race." Sovereign governments will have no choice but to get into the act. All of that heavy buying should send the price of Bitcoin soaring.

That scenario might sound improbable, but so did the idea of Bitcoin treasury companies just a few years ago. Who could have imagined that companies that do nothing but hoard Bitcoin would exist? And yet, here we are. The top 100 Bitcoin treasury companies combined hold more than 5% of all Bitcoin in circulation, and are a force to be reckoned with.

How high can Bitcoin go in 2026?

To get an idea of just how high Bitcoin might go this year, I've been tracking Bitcoin price predictions by top analysts, investors, and industry insiders. Last year, for example, JPMorgan Chase (NYSE: JPM) predicted that Bitcoin might hit a price of $170,000 this year. And in December, Tom Lee of Fundstrat predicted that Bitcoin would hit a price of $250,000.

According to the 2026 Bitcoin price prediction roundup from CNBC, top analysts predicted prices ranging from $125,000 to $225,000, with many predictions clustered around the $150,000 price mark. The most well-known of these $150,000 price predictions is the one from Standard Chartered.

Is a price of $150,000 for Bitcoin wishful thinking? Perhaps so. According to online prediction markets, Bitcoin only has a 24% chance of hitting $150,000 this year. A price of $200,000? Forget about it. The chances are less than 1 in 10.

But I'm fully comfortable investing in a cryptocurrency that has a 1-in-4 chance of soaring from $93,000 to $150,000 for the year. That's a nice, tidy return of 60%. Surely, that's more than equity investors can expect from even the highest-profile tech stocks. All of which is to say: Buy the dip. If history is any guide, this longtime strategy will once again pay off for patient Bitcoin investors.

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.