Is It Too Late to Buy Bitcoin?

It's been quite the last month for Bitcoin (CRYPTO: BTC). Over the past 30 days, the world's leading cryptocurrency has surged more than 35%, building enough momentum to smash through the coveted $100,000 mark -- a milestone many longtime investors anticipated.
For those who have been in the Bitcoin game for years, this achievement likely feels like vindication. But for new, prospective investors, the recent price action may spark a nagging sense of FOMO, or fear of missing out. If this sounds like you, here's the good news: It's probably not too late to invest in Bitcoin. However, there are things you need to know first.
The case for Bitcoin's continued growth
At first glance, it might seem like Bitcoin has little room to grow beyond $100,000. But history tells a different story. It's known for its cyclical nature, following a four-year pattern tied to its halving events. These halvings, which reduce Bitcoin's inflation rate by cutting mining rewards in half, have historically been significant catalysts for price increases.
We're currently in the third year of this cycle -- the halving year itself. Historically, this year sets the stage for the crypto's strongest price movements, which typically occur in the year following the halving.
It might sound hard to believe that Bitcoin can follow a predictable pattern, but so far, its trajectory over the last few years aligns closely with exactly what it's done in the past.
After a harsh bear market in 2022, investors began accumulating it during 2023. Now, in the halving year of 2024, the market is seeing substantial gains, with the potential for even greater price action in 2025. Look back at the data, and you will see exactly what I'm talking about.
Why patience is key
While 2025 has the potential to deliver notable gains, newcomers need to understand that the best opportunities often arise during the quieter, earlier stages of its cycles.
Current price levels suggest that we may be closer to the peak of this bull market than its beginning. If history repeats itself, a bear market will likely follow, with the price potentially dropping 70% to 80% from its highs.
This inherent volatility makes short-term strategies risky, particularly for new investors. Buying during periods of heightened speculation often leads to panic-selling during inevitable corrections.
To mitigate these risks, it is imperative to approach Bitcoin from a long-term perspective. If you are going to buy it, you should do so with the intention of holding it for a little more than a full halving cycle.
Data shows that any Bitcoin held for at least six years has never returned less than 22% (in most cases, it's more). This is largely due to the semi-predictable impact of its halving cycles. The more halving cycles you hold through, the greater the chance you stand to benefit from reductions in supply compounding. The bottom line is that instead of chasing quick profits, focus on steady accumulation and holding through cycles since this has proved to be a more effective strategy.
Bitcoin's unique long-term potential
So, is it too late to buy Bitcoin? Absolutely not. But if you're hoping for a quick buck, look elsewhere since the days of the crypto delivering exponential, life-changing returns in mere weeks are likely behind us. Instead, when we zoom out a bit, it is clear that its best days are still ahead.
When you invest in Bitcoin for the long term, you will be investing in a unique asset. With a fixed supply of 21 million coins, Bitcoin is inherently deflationary, standing in stark contrast to fiat currencies that can be printed in unlimited quantities.
In addition, Bitcoin's decentralized network and unmatched security give it a unique edge as a store of value in an increasingly digital world. These traits could drive increasing demand from corporations, financial institutions, and even governments in the coming decades, solidifying the crypto as a cornerstone asset for global portfolios.
What to do now
If you plan to invest in Bitcoin, approach it with the mindset of holding for multiple years. Adopt a strategy that prioritizes consistent investment, such as dollar-cost averaging, and aim to accumulate it during the earlier stages of its cycles rather than at speculative peaks.
The journey of investing in Bitcoin is just as important as the destination. For Bitcoin, that destination -- its full potential as a transformative financial asset -- is still far off. By focusing on patience, discipline, and understanding the asset's unique value, you can position yourself to benefit from its long-term growth rather than just trying to chase short-term gains.
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RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.