Bitcoin (CRYPTO:BTC) has experienced significant volatility in 2024, rising 60% in Q1 before stabilizing within a narrow range. As of September 26, the world’s largest cryptocurrency still remains 11% below its March all-time high. Thus, while the crypto market has seen significant volatility, Bitcoin has actually held up quite well overall. In fact, one could argue that its trading patterns have been much more gold-like than speculative asset-like, at least of late. 

That’s recent performance, but on a historical basis, Bitcoin’s overall price action has been incredible. An individual who bought $1,000 worth of Bitcoin at its inception would have seen gains of

98,977,113% at the time of writing. You read that right – that $1,000 investment would be worth around 1 million-times an initial investment, or just shy of $1 billion.

Now, Bitcoin is the oldest and most valuable cryptocurrency out there, so this is an edge case, to put it lightly. But these returns are truly staggering, and make every flash drive dated to the early 2010’s worth something.

Let’s dive into what to make of this move, and where Bitcoin could be headed in here in light of this historical performance.

Key Points About This Article:

• Bitcoin’s long-term returns have been staggering, and provide a glimpse into what investing steadily in a given asset over time can do for one’s long-term portfolio.
• Here’s where Bitcoin could be headed from here judging from its past performance, and why many investors continue to hold this digital asset.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Bitcoin Outlook: Short and Long Term

It’s been a good year for Bitcoin. There was the halving event earlier this year, which cut mining rewards in half (an event which takes place roughly once every four years). This restriction of supply came at a time when the Securities and Exchange Commission (SEC) also decided to approve spot Bitcoin ETFs, allowing more capital to flow into this sector over time.

So, a supply and demand imbalance was born, and expectations of this gap widening is what led to Bitcoin’s rally to new all-time highs this year.

Unfortunately, this rally has since stalled, and Bitcoin has given up a chunk of its gains from earlier this year. But as interest rates continue to decline, many experts think that risk capital will continue to search for asset classes that have the greatest growth potential. Bitcoin has historically proven its worth as a growth asset, and that could mean greater demand at a time when newly-issued supply isn’t coming online as quickly as it was.

This supply and demand story is one that can continue in perpetuity, and is one reason why many Bitcoin bulls simply don’t seem keen to sell – ever. We’ll have to see if the ride can continue (Bitcoin is currently valued at more than $1.2 trillion, and trees don’t grow to the sky). But for now, historical performance appears to provide a recipe for future gains many long-term investors like and are holding onto.

Risk Still Remains

Bitcoin is a cryptocurrency, and as part of the digital asset space, volatility is not only expected but largely welcomed by investors. A significant sum of derivatives contracts are traded each day on Bitcoin and other digital assets. This won’t change over time.

But it’s also true that over the long-term, Bitcoin continues to move higher. Experts have noted that since March’s peak of $73,000, the number of potential sellers has significantly decreased, reaching a low point over the past six months.

That’s a good thing for holders.

But the reality is that a range of macro forces could drive Bitcoin lower at any given point in time. In the past, Bitcoin has acted as a safe harbor for investors. At other times, it’s acted more like a risk asset. So, depending on how investors view this token over the medium-term, we’ll get a real idea as to whether Bitcoin can hold its own in the fact of a recession – it hasn’t quite yet, since it was conceived post-GFC.

Is Bitcoin Still a Buy Moving Forward?

This is the golden question really – is Bitcoin still a buy?

There are many who think Bitcoin will be the basis upon which a new age of digital money will be ushered in. I’m not necessarily among the sound money crowd who believes this, but there’s a rationale behind this way of thinking. Holding an asset class that is completely separate from the U.S. dollar and can act as a means of exchange in terrible times can be a good thing, and you don’t have to be a doomer to understand the mentality behind why so many people own this token.

Bitcoin has several upcoming catalysts that may boost its price, but its true value extends beyond these factors. In an era of rising government debt, inflation, and economic policies that often overlook ordinary people, Bitcoin offers a hopeful alternative. Its decentralized nature and fixed supply protect it from central manipulation, positioning it as a critical asset for preserving and growing wealth. 

In my view, Bitcoin remains the top cryptocurrency most institutional investors are likely to consider. On that basis, and in combination with the recent SEC approvals of spot ETFs, I do think there’s a near-term case that can be made that Bitcoin could surge to a new all-time high next year. 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.