Blog |

Bitcoin Hits $100K: Here’s What Smart Investors Are Doing Now

What You Need to Know to Make Smart Moves

SUMMARY:

• Bitcoin is a long-term store of value, not a quick flip.

• Direct ownership offers control and avoids ETF risks.

• DCA builds value steadily, especially after halving events.

• Wealthy investors value Bitcoin’s scarcity and diversification.

---

Bitcoin has finally crossed the $100K milestone, and it’s got everyone taking up an interest in cryptocurrencies.

But there is something that you should know. Smart investors aren’t treating Bitcoin like a lottery ticket or a stock to flip overnight.

They’re treating it like digital gold—a long-term store of value that demands patience, planning, and a strategy that works for you.

Let's get into what smart investors are doing and how it may benefit you as well.

Treat Bitcoin Like Gold, Not the Lottery or Stocks

Bitcoin requires long-term thinking.

Just like gold, Bitcoin’s value lies in its scarcity. Instead of hoping for overnight riches, focus on how it can play a steady role in your financial future.

Building wealth takes time, and Bitcoin rewards those who plan and stick with their strategies.

Why Own Bitcoin Tokens Over Buying ETFs

When you own Bitcoin directly you get full control of your investment without relying on intermediaries like ETFs.

That means no management fees cutting into your profits and no counterparty risks to worry about.

You own it outright—it’s yours.

ETFs might seem like an easy option, but they come with their own risks. Regulatory changes and market manipulation can make ETFs less stable.

Bitcoin operates on a decentralized network, so its value is shaped by adoption, not by middlemen.

And here’s another thing to keep in mind: Bitcoin’s scarcity. With only 21 million coins ever, owning even a small fraction can make a huge difference to your financial future.

Why settle for exposure through an ETF when you can own the real thing?

The Power of Dollar-Cost Averaging After Every Halving

 

Historically, Bitcoin’s price tends to surge after each halving event, and this is where Dollar-Cost Averaging (DCA) shines.

DCA means you’re investing a fixed amount on a regular schedule—whether prices are up, down, or sideways.

Let’s imagine you started DCAing $100 BTC per month into Bitcoin since 2020. This means your average yearly spend for investing over 4 years would have been $1200.

That means by 2024 you’d have invested $4,800 in total over four years.

Total Investment: $4,800

Bitcoin Accumulated: ~0.1731 BTC

Portfolio Value in December 2024: ~$17,372.64

This is why DCAing works better than trying to time the market. Especially for those not able to invest the time and knowledge into learning how to trade.

DCA keeps emotions out of your decisions. You’re not chasing headlines or reacting to sudden price drops. You’re sticking to a preset plan, chasing out your ROI and letting the rest build and ride.

That’s how you win in the long run.

Why the Wealthy Are Clamoring to Own Bitcoin

Ever wonder why the wealthiest investors are now snapping up Bitcoin?

Let’s look at big companies that have invested into Bitcoin:

• MicroStrategy: The business intelligence firm holds approximately 423,650 Bitcoins, valued at over $42 billion.

• BlackRock: The world's largest asset manager launched the iShares Bitcoin Trust ETF (IBIT) in January 2024, which now holds over 500,000 Bitcoins, valued at around $48 billion.

• Grayscale Investments: Manages the Grayscale Bitcoin Trust (GBTC), which holds over 600,000 Bitcoins, making it one of the largest institutional holders of Bitcoin.

• Tesla: The electric vehicle manufacturer invested around $1.5 billion in Bitcoin in December 2020 and continues to hold a large portion of that initial investment.

• ARK 21Shares Bitcoin ETF (ARKB): A collaboration between ARK Invest and 21Shares, this ETF offers exposure to Bitcoin's price movements.

• VanEck Bitcoin Trust (HODL): Managed by VanEck, this ETF provides investors with a cost-effective way to invest in Bitcoin.

And why is there such a big demand for BTC among these wealthy people and big companies?

For one, it’s an asset that has increased in value over time. Unlike cash that loses its purchasing power over time.

Then there’s the scarcity factor. With only 21 million Bitcoin ever, the supply is finite—and the wealthy know it.

They’re buying now because they see where this is headed: increased demand and higher prices.

Bitcoin also brings something unique to the table: diversification. It’s not tied to the stock market or the whims of central banks.

It’s a way to balance your portfolio with an asset that’s built for the digital age.

Strategies for Navigating $100K Bitcoin

Let’s get practical.

First, focus on the long term. It might be tempting to cash out at $100K, but ask yourself: what’s your plan for the next five, ten, or twenty years? Holding onto a core position could pay off big time.

Next, rebalance your portfolio. As Bitcoin’s value grows, take some time to ensure your investments still align with your overall goals. That might mean taking profits or reinvesting elsewhere to stay diversified.

Staying informed also matters. The crypto market moves fast, and understanding trends, regulations, and innovations can help you make smarter choices.

Keeping Your Crypto Safe

Don’t forget security. At $100K per Bitcoin, protecting your investment is more important than ever.

Use tools like hardware wallets such as Ledger or Trezor to keep your holdings safe.

A good practice can be dollar-cost averaging with a bi-weekly or bi-monthly schedule into BTC through a reputable exchange. Then when your earnings hit a $1000 value to transfer them to a hardware wallet.

Maintain Multiple Wallets

Having multiple wallets is another option for extra security. Such as, making sure each hardware wallet carries no more than a certain amount in the event of hacking.

Here are ways to diversify your wallets:

• Trading Wallet: This is the wallet that you will use frequently. It interacts the most with exchanges or dApps

• Long-Term Wallet: This is the wallet that holds the crypto you either have staked or intend to hold onto for more than 12-months. Hardware wallets can be a great choice for those who HODL.

• BTC Wallet: This is usually a hardware wallet kept in cold storage. You can have multiple of these and choose how much to keep on each. Keep in mind, hardware wallets can cost around $75 or more.

Final Thoughts

Bitcoin hitting $100K is a milestone, no doubt about it. But the way you respond now matters.

This isn’t a time for guesswork or gambling. It’s a time to double down on a solid strategy that works for you. You can try out various crypto research tools to help enhance your knowledge and understanding in this space.

Think long term, plan your moves, and most importantly, manage your risks. Bitcoin’s potential is enormous, but so are the challenges.

Be prepared, stay disciplined, and keep your goals in focus.

(Disclaimer: This article is not financial advice and is intended for educational purposes only. Our articles are not sponsored or affiliated with any of the businesses, tokens, teams, or protocols mentioned. It is important to conduct thorough research and only invest an amount that you are comfortable potentially losing. For personalized financial advice, consult a professional.)