After marking a lackluster 2025, Bitcoin’s drop below that price level is spooking some investors.
This is a case worth focusing on even more than usual in the long term.
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Investing for the long term is, in large part, the art of not confusing any individual sign with the contour of the landscape itself. In that sense, many investors are concerned that bitcoin(CRYPT: BTC) has fallen below $90,000 after a weak 2025.
But I’m still accumulating it and I’m not worried about this asset at all. Here are three reasons.
Image source: Getty Images.
The first reason I’m not worried about Bitcoin falling below $90,000 is that I plan to hold it for years, no matter what its price is in any given month. Expect turbulence along the way.
For example, Bitcoin closed at $16,646 on December 17, 2022, which was roughly the bottom of the last major cryptocurrency bear market. Even after the currency’s lackluster performance in 2025, it is up 428% today compared to three years ago. Worrying about what you’ve done over the past few months is a sure way to erode your conviction and eventually prepare to sell your Bitcoin when you’d probably be better off just holding onto it. Price drops are just theoretical losses until you actually sell and lock prices lower forever.
The mechanism that makes holding this asset long-term so attractive is the halving cycle. With each passing halving, roughly once every four years, it becomes dramatically more difficult to mine Bitcoin. That means future buyers will compete for a smaller pool of new supply, which tends to skew prices higher.
Another reason to stay calm right now is that the supply of Bitcoin increasingly lives on the balance sheets of owners whose incentives lean toward holding it rather than selling it.
Government entities, public companies, asset managers, and exchange-traded funds (ETFs) today account for just over 4 million BTC of the asset’s total possible circulating supply of 21 million BTC. Large holders can still sell if certain contingencies force them to do so, but they are generally much less skittish than marginally tied retail investors looking for a quick crypto turnaround. If financial institutions or even central banks start hoarding the currency to hold as reserves, it will mark another full expansion phase of Bitcoin’s maturity as an asset, and that is likely just around the corner.
Furthermore, for the most part, governments that are positioning themselves to advance big price-moving ideas, such as a Strategic Bitcoin Reserve (SBR), have not actually begun to implement their plans. When they do, word will catch on, and then even more Bitcoin will be removed from circulation, potentially for years to come.
The final reason I’m not at all worried about Bitcoin’s decline is that it has a reputation for acting as a barometer of global liquidity.
In this context, “liquidity” can be thought of as the ease with which capital moves through the financial system. It is primarily influenced by central bank policy, credit creation and the broad money supply and, over a period of several years, tends to be quite cyclical.
When liquidity increases, risk assets often benefit significantly and Bitcoin is no exception. Given that it seems very likely that the United States will continue to move towards a more accommodative (more flexible) monetary policy stance in the coming quarters, liquidity will likely increase and Bitcoin could receive a big tailwind.
Even if that doesn’t happen in the short term, in the long term another liquidity expansion is virtually guaranteed. So, if you buy Bitcoin consistently like I do, the purchases you made during times of tight liquidity (like 2022, for example) will end up being at very favorable prices.
When liquidity finally expands again, purchases made during difficult times start to pay off, and that’s exactly what I expect to happen again over the next two years.
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Alex Carchidi has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has a disclosure policy.
3 Reasons I’m Not Worried About Bitcoin Falling Below $90,000 was originally published by The Motley Fool
