Bitcoin’s Growing Appeal: Why It Might Be a Smart Investment

Bitcoin (CRYPTO: BTC) remains an asset worth considering for many investment portfolios, even with a modest allocation of $1,000. Recent developments are strengthening the case for buying and holding Bitcoin further, making it an attractive option for investors.

1. Increased Investment from Major Companies

When large corporations decide to acquire and hold an asset like Bitcoin, it signals a level of confidence in its long-term viability. Companies such as Tesla have started accumulating Bitcoin.

This trend is significant as these major players are not engaging in quick trades. They seek to hold Bitcoin as a liquid investment on their balance sheets that is expected to appreciate over time. This strategy allows them to use Bitcoin’s value as collateral for loans, and rising Bitcoin prices can enhance their stock market valuations.

Image source: Getty Images.

According to research from River, businesses have become significant buyers of Bitcoin in 2025, surpassing governments, exchange-traded funds (ETFs), and individual investors. Company ownership has increased by 154% over the past year. A growing number of holders may lead to a reduced floating supply, potentially driving prices higher, which justifies investing in Bitcoin now.

2. Holders Are Not Pressured to Sell

Investor sentiment plays a crucial role in market dynamics. Presently, the majority of Bitcoin holders are finding it easy to maintain their investments. At a recent price of about $103,000, approximately 97% of wallet addresses are in profit. As a result, most holders do not feel compelled to sell their assets to mitigate losses.

Those who invested at higher prices, during Bitcoin’s all-time high of over $109,000, are likely not in dire straits. Should existing holders choose to sell, it would likely be for personal financial needs rather than fear of market declines. This generally positive mood among holders supports a bullish outlook for Bitcoin.

3. Potential Cryptocurrency Reforms in China

Since 2021, China has banned Bitcoin mining and trading. Despite this, the country remains the second-largest Bitcoin miner, accounting for about 21% of the global hashrate. Legal reforms could radically transform China’s cryptocurrency landscape.

Recent indications suggest that the Chinese government may implement regulatory reforms. Strategies published on May 12 highlight the importance of managing cryptocurrency risks and enhancing blockchain oversight. Additionally, reports from late 2024 indicate that regulation is a priority for China’s central bank. Recent actions hint that China is utilizing Bitcoin for settling payments, possibly to evade U.S. sanctions.

Although there is speculation about a major legalization announcement in the near future, concrete evidence remains scarce. Nevertheless, anticipated regulatory reform appears likely, providing a solid basis for investment in Bitcoin even with a modest entry point of $1,000.

Should You Invest $1,000 in Bitcoin Now?

Before proceeding to buy Bitcoin, consider these insights:

The Motley Fool analyst team has identified the top 10 stocks for potential investment, and Bitcoin was not included. The selected stocks could yield substantial returns in upcoming years.

For instance, when Netflix was recommended on December 17, 2004, an investment of $1,000 would now be worth $620,719*. Similarly, an investment in Nvidia made on April 15, 2005, would have grown to $829,511*.

Notably, Stock Advisor boasts a total average return of 959%, far exceeding the 170% return of the S&P 500.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.