Here's Why I'm Buying Bitcoin Right Now

Bitcoin (CRYPTO: BTC), up more than 40% in the third quarter, has suddenly reappeared on the radars of top investors. Yes, Bitcoin may still be down 37% from its all-time high of $126,000 in October 2025, but it now appears poised for another bull market run.

However, there's more to like about Bitcoin than just its ability to skyrocket in price. Here's why I'm buying Bitcoin right now.

Bitcoin's unique risk-reward profile

According to JPMorgan Chase (NYSE: JPM), Bitcoin could become the top-performing asset of the next decade. JPMorgan Asset Management is now predicting 10% annualized gains for Bitcoin during that time period. That's better than the 7.5% gains possible from investing in stocks, the 6% from investing in bonds, or the 5.5% from investing in gold.

Image source: Getty Images.

But there's another aspect of Bitcoin that does not get as much attention, and that is its lack of correlation with any major asset class. That enables Bitcoin to zig when other assets zag. That's particularly helpful during stock market downturns, for example. That's why Bitcoin has been embraced by top institutional investors as a unique portfolio diversifier.

It might sound counterintuitive at first, but modern portfolio theory (MPT) says that adding a risky, volatile asset to a relatively conservative portfolio can actually make it less risky. So, if you're expecting the AI boom to turn into an AI bust, or if you're expecting tensions in the Middle East to ratchet up even higher, Bitcoin might be able to help investors diversify away some of that risk.

Growing rates of Bitcoin adoption

For more than a decade, the primary buyers of Bitcoin were retail investors. But that all changed in 2021, when Wall Street banks and other financial institutions began to talk up Bitcoin as a stand-alone asset class. It was no longer enough for institutional investors to have a portfolio that consisted of stocks, bonds, commodities, and real estate -- they now needed to add in a tiny bit of Bitcoin to achieve a fully diversified portfolio.

Since then, the rate of institutional adoption of Bitcoin has been on the rise. First came the Bitcoin ETFs. This unlocked Bitcoin for institutional investors and hedge funds. Then came the Bitcoin treasury companies. Then came corporations dabbling in Bitcoin as a balance sheet asset.

The next major source of demand for Bitcoin could come from sovereign governments. The U.S. government announced the creation of a Strategic Bitcoin Reserve in 2025, and that was quickly followed by other nations also exploring the creation of Bitcoin reserves. If sovereign governments begin buying Bitcoin in large quantities, its price could be poised to soar much higher.

Bitcoin goes mainstream?

Even if Bitcoin is no longer able to soar in price the way it once did, I'm perfectly OK with that. Bitcoin is becoming much more of a mainstream financial asset. The highs may not be as high, but the lows will not be as low.

For now, Bitcoin offers the optimal mix of upside potential and downside risk protection, and it's the one cryptocurrency I'm focused on buying right now.

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.