Bitcoin (CRYPTO:BTC) has been one of the best performing assets over the course of the past decade, and that’s not really up for discussion. Returning more than 30,000% over this time frame, investors who have stuck with the world’s largest digital asset have seen their initial investment grow 300x over such a time frame.
Those sorts of returns are abnormal, to say the least. But the reality is that this growth has been possible thanks to a prevailing idea that more and more capital will continue to flow toward blockchain technology, which provides the ability for users to transfer value across borders in a very low-cost manner, with investors benefiting from price appreciation by storing these tokens offline in cold storage (a strategy that’s worked, despite various signifiant downturns in the past).
With Bitcoin ending last year down more than 30% from its intra-year peak, and actually losing money for investors in 2025, let’s dive into what 2026 may have in store for those considering buying Bitcoin here.
I’m going to take the angle of whether the strategy imposed by Strategy (NASDAQ:MSTR) CEO Michael Saylor is one worth following.
Is Bitcoin a Buy At Any Price?
Bitcoin price chart
I think there’s a certain psychological element to buying and holding Bitcoin for the long-term. In fact, I’d argue that the thought process behind certain investors who have remained so-called “permabulls” on Bitcoin cite many of the same arguments in their rationale for continuing to buy this token at appreciating price levels.
Michael Saylor has certainly found an investing strategy that’s worked, at least in the past. His firm, formerly MicroStrategy, does have a core software business that’s worth something. But over the years, Saylor’s ability to use this company’s corporate structure to load up its balance sheet with Bitcoin has allowed the firm to transform itself into essentially a digital assets holding or treasury company.
This strategy has allowed MSTR stock to surge much faster than Bitcoin in recent years, with the stock trading at roughly 3x its mNAV (an approximation of the book value tied to its digital asset holdings).
Now, it’s worth pointing out that as of the end of 2025, Strategy’s stock has dropped so significantly that investors can pick up MSTR stock at a discount to its mNAV, so there may be a valid reason to hold this stock moving forward. That said, I do think there’s some risk with this investing strategy the market is beginning to catch on to, which involves the use of leverage in buying Bitcoin.
Leveraged Bitcoin Positions Add Significant Portfolio Risk
Stock chart heading lower
I think Strategy’s impressive decline of nearly 50% in 2025 is one that exemplifies what can happen in down markets for Bitcoin. Yes, this token typically trends higher over the course of a year. And over Bitcoin’s history, aside from a number of significant drawdowns, the price action has been mostly up and to the right, with each correction seemingly getting bought by whales like Saylor and others.
But given the prevalence of perpetual futures contracts and other derivative vehicles for investors to choose from, the reality is that plenty of leverage continues to be added every day as investors look to amplify near-term returns by betting on Bitcoin’s price action over a specific period of time. I’m not in that game, but it’s something worth noting for those looking to buy Bitcoin the traditional way (opening a wallet and buying some on a decentralized exchange), or those looking to use a spot ETF to mirror the price of Bitcoin.
If we see significant washouts over the course of 2026 that continue Bitcoin’s down trend, things could certainly get ugly pretty fast for companies and individuals using extreme leverage to buy this token. In the case of Strategy, the use of debt and equity raises to buy Bitcoin has become a focal point for investors. The bottom line is that if Bitcoin drops enough (by 50% or more from here), Saylor and a whole slew of investors could be no more.
That’s not a risk I think most investors are comfortable with taking.
So, Is Bitcoin Even Worth Buying?
Bitcoin logo on a gold token
In my view, Bitcoin does remain a compelling long-term asset to include as part of a well-diversified portfolio, for those with the risk tolerance to do so. Various hedge funds, pension funds, and endowments now include some exposure to Bitcoin in a bid to ramp up their long-term returns. Overall, I think the shifting regulatory environment which has allowed individual investors to buy vehicles like spot ETFs tracking the price of Bitcoin are a positive step forward overall.
That said, I think any Bitcoin allocation should remain small at the start, and should be right-sized over time, depending on its price movement. I like to think of more speculative holdings in a portfolio as needing greater risk management guardrails – keeping a position within a certain percentage (say, 5%-10%, or something similar).
Long-term investing is a very different thing than speculating, and that’s just a fact. I don’t think holding one’s nose and buying Bitcoin at any price makes sense. But for those who bought Bitcoin at the top, this 30% drawdown from its recent peak may be enticing to add to a position and get back to one’s desired position size. It’s all a matter of perspective.