Bitcoin (BTC 1.11%) is an asset that belongs in pretty much every portfolio, even if it’s just a small allocation of $1,000. And, excitingly for those who hold it, there is a trio of new developments that make the case for buying and holding it even stronger than it was before — and it was pretty strong.
Let’s take a look at each to appreciate why this coin is a screaming buy no matter how much capital you’re interested in investing.
1. Businesses are buying it
When big companies want to buy and hold an asset, it suggests that the asset is proven enough for them to rely on. And some of the world’s largest businesses, like Tesla and Strategy are buying and holding Bitcoin.
The reason this is a factor supporting buying the coin yourself is that these players are not looking for a quick flip. Especially if they’re heavily engaged in industries that create physical stuff rather than digital assets, the point of them accumulating Bitcoin is that it’s an investment they can hold on their balance sheet that is both liquid and can be reasonably expected to grow. That enables them to borrow capital using the value of the coin as collateral, and it also helps to pump up their stock prices when Bitcoin is climbing.
Image source: Getty Images.
According to the crypto research group River, businesses have been bigger buyers of the coin in 2025 so far, surpassing governments, exchange-traded funds (ETFs), and individual investors. Per its data, ownership among companies has grown by 154% during the last 12 months. With so many new holders that will be reluctant to sell, the floating supply of the asset will be constrained, sending prices higher — and justifying a purchase of it now.
2. Holders aren’t feeling pressure to sell
Investor psychology matters, and for this asset, investors are likely finding it to be a very easy hold, at least for the moment.
At its recent price of about $103,000, about 97% of all wallet addresses holding Bitcoin are holding it at a profit. Therefore most holders are not under any kind of pressure to sell their coins to avoid incurring further losses (as misguided and as short-term of a mindset as that would be). For those who are underwater, it simply isn’t possible for their losses to be very substantial, as the coin’s all-time high is more than $109,000. So they probably aren’t sweating very much even if they might wish for the coin’s price to rise a bit.
It is still very possible for the existing set of holders to sell their coins anyway. But without any major detrimental changes in the global macroeconomic outlook, such sellers will be more likely to be selling for individual reasons, like paying for expenses or rotating their capital to somewhere they think it’ll have a higher return, rather than due to skittishness or fear-driven capitulation. And that’s why this is a bullish trend for as long as it lasts.
3. Cryptocurrency reforms might happen soon in a key country
Mining or trading Bitcoin has been banned in China since 2021. Nonetheless, it’s still the world’s second-largest Bitcoin miner, with mining operations there accounting for roughly 21% of the global hashrate.
That means it would be a Bitcoin juggernaut if cryptocurrency were legalized or reformed. There is some evidence that such reforms are on the way, which would be a gargantuan catalyst for the asset.
Per the country’s national security strategic plans published on May 12, managing cryptocurrency-related risks and building up its blockchain oversight capabilities will be important focus areas. China’s central bank also stated in late 2024 that regulating cryptocurrencies was an issue of importance. And earlier this year, evidence surfaced that it was using Bitcoin to settle some of its payments for commodities like oil to dodge certain U.S. sanctions. Furthermore, crypto companies are still allowed to operate in Hong Kong, which enables the regulators on the mainland to easily gather information about the industry and even to conduct regulatory experiments before rolling out any policy affecting the entire country.
While some crypto industry influencers have proposed that China’s big Bitcoin legalization move could occur before the end of this year, there isn’t really enough firm evidence to support the argument for any specific timeline with certainty. But in the long run, it seems likely that China will indeed reform its regulations, opening the door for significant growth in its domestic cryptocurrency industry. And that’s another big reason to invest, even if it’s only $1,000.
