Will the price of Bitcoin rise again?

Although the price of bitcoin has dropped from a recent peak, it still makes up almost 2 percent of all assets worldwide

Why does the price of Bitcoin fluctuate, and should you invest?

In the ten years leading up to 2025, Bitcoin was the best-performing asset globally.

The largest cryptocurrency in the world, Bitcoin, saw a nearly 27,500 percent increase in value in dollars between November 10, 2015, and November 10, 2025.

With returns of more than 35,000 percent in the ten years leading up to June 30, 2025, VanEck's analysis reveals that Bitcoin has been the best-performing asset in eight of the previous eleven years.

A £1,000 investment in Bitcoin ten years ago would be worth more than £362,000 today, according to research from cryptocurrency exchange Kraken.

Bitcoin is perceived as a risky investment due to its volatility, even with these gains.

Less than a month after reaching an all-time high of over £126,000 on October 6, the price of bitcoin dropped to less than £100,000, a 21.7% decrease from peak to trough.

In the five days leading up to November 10, the price of Bitcoin increased by 2.7 percent to approximately £106,460, indicating a recovery from these recent drops. However, in dollar terms, Bitcoin has dropped by 12.7 percent over the last month.

"As adoption deepens and regulation matures, Bitcoin is increasingly viewed not as a speculative trade, but as a structural component of modern portfolios," says Thomas Perfumo, global economist at Kraken. Track all markets with TradingView.

Some claim that Bitcoin has already established itself as the internet's reserve currency and is the currency of the future. What influences Bitcoin's price fluctuations, and should you invest in it, given that many people believe it to be an intrinsically worthless asset?

How does Bitcoin make sense as an investment?

Bitcoin's design incorporates scarcity. The rate at which new Bitcoins enter circulation halves roughly every four years, a phenomenon known as the Bitcoin halving, and a maximum of 21 million will ever be mined.

By November 17, 2025, the number of Bitcoins in circulation will surpass 19.95 million, or 95% of its maximum potential.

Perfumo claims that "programmable scarcity, coupled with predictable issuance and decentralized design, sets Bitcoin apart from competing forms of money and asset classes."

Theoretically, because of its scarcity, Bitcoin can serve as a hedge against inflation brought on by the unavoidable depreciation of fiat money.

According to Perfumo, "the macro conditions that drive global markets, business cycles, liquidity trends, and investor sentiment affect Bitcoin's market price in the short term." However, he believes that in the long run, its design, permissionless access, and growing worldwide adoption enhance its intrinsic value.

Perfumo continued, "It continues to be a natural hedge against fiat debasement and one of the few globally accessible, credibly neutral stores of value."

Another claim is that Bitcoin has the potential to diversify portfolios. Although this makes sense in theory, changes in US equity markets are occasionally linked to changes in Bitcoin prices.

According to data from newhedge, Bitcoin prices have occasionally had a negative correlation with the SandP 500 throughout 2025, particularly in June. However, for the majority of the year, there has been a fairly strong positive correlation (often above 0.8, with 1 being perfect correlation) with the index.

Should you make a Bitcoin investment?

Bitcoin is a contentious asset that tends to elicit either very positive opinions from bulls who are fully committed to cryptocurrencies or skeptics who avoid them altogether.

Between these two extremes, there is a middle ground that views Bitcoin as an asset that might contribute to a balanced portfolio in the same way as any other.

Weighing your exposure to Bitcoin according to the market as a whole could be a balanced strategy. As of August 31, 2025, digital assets make up 1.7 percent of the global listed market portfolio, with Bitcoin accounting for 56 percent of the market capitalization.

Based on this, Dovile Silenskyte, director of digital assets research at WisdomTree, contends that it makes sense to allocate about 2 percent of your portfolio to Bitcoin.

According to Silenskyte, "zero exposure is an active underweight against a rapidly expanding asset class, not caution." Historically, returns have increased with a measured 2 percent allocation, but volatility has hardly changed. The "

According to WisdomTree research cited by Silenskyte, a 2 percent Bitcoin allocation in a 60/40 global portfolio increased annual return by 1.3 percent for only 0.19 percent more volatility.

Any investment decision, however, should take into account the risks involved, your own unique situation and objectives, and, if at all possible, seek advice from a financial advisor.

How can I purchase Bitcoin?

Purchasing Bitcoin straight into a cryptocurrency wallet is the simplest way to be exposed to Bitcoin prices. Creating a specialized exchange like eToro, Coinbase, or Bitpanda may be necessary to achieve this. Additionally, keep in mind that profits would be subject to capital gains tax (CGT) because Bitcoin cannot be held in an ISA or a Sipp.

You could purchase a Bitcoin ETN (exchange-traded note) into an ISA for stocks and shares, but keep in mind that on April 6th, you will have to sell any holdings here (or transfer them into an Innovative Finance ISA, if you have one). Similar to an exchange-traded fund (ETF), a Bitcoin ETN is a debt instrument that tracks the value of a specific asset, in this case Bitcoin.

You can obtain some indirect exposure through cryptocurrency stocks like Coinbase (NASDAQ:COIN) or cryptocurrency exchange-traded funds (ETFs) like the Invesco Blockchain ETF (LON:BCHS), but there are no other ways to obtain direct exposure to the price of Bitcoin through stocks and shares ISA. These funds typically hold a variety of stocks that use blockchain technology, including cryptocurrencies like Bitcoin, or that benefit from it in some other way.