Bitcoin has soared above $100,000, but Bitwise CIO Matt Hogan says it's never too late to start investing. Despite significant price increases in recent years, mainstream skepticism remains, and companies like Microsoft are wary of adding Bitcoin to their balance sheets. Hogan emphasized that most investors do not have exposure to Bitcoin yet, suggesting that it is still too early for investors to jump in now. He advocates HODLing over market timing, noting that long-term profits can be made even after significant declines.
With Bitcoin recently breaking above US$100,000 and hitting a new all-time high of US$103,900 (AU$162,889), it may now be too late to allocate more to BTC, or perhaps even BTC. You may wonder if it's too late to start even if is zero.
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According to Bitwise Chief Investment Officer (CIO) Matt Hougan, the short answer is no. It's never too late to get started with BTC.
Just ask Michael Saylor, who has been on a buying spree at Tysons Corner, Virginia-based MicroStrategy (MSTR) “Bitcoin Company.” Even as the OG cryptocurrency reached dizzying highs, MSTR added billions of dollars worth of Bitcoin to its holdings.
Hogan says Bitcoin always feels slow
In 2023, the market rose and Bitcoin rose by 160%, rising from US$16,500 (AU$25,800) to US$42,900 (AU$67,250) in a short period of 12 months.
2024 will be no different, with BTC already up over 130% so far and still a few weeks left.
Hogan said after a great performance in 2023, people are expecting great things in 2024 and have similar expectations for 2025.
Therefore, his advice is the same as last year. Most people don't have Bitcoin yet, so it's not too late to invest.
Again, everyone wants to know if it's too late. My answer this year is the same as last year: “No.” Most investors still have zero exposure to Bitcoin. Until that changes, you are, by definition, a fast person.
Matt Hogan, Bitwise CIO
And despite all the bullish developments, including MSTR purchases, ETF additions to BTC, and talk of government Bitcoin reserves, there is still a lot of skepticism. As an example, Microsoft just rejected plans to add a small amount of BTC to its balance sheet.
Related: Mass liquidations, billions of dollars liquidated | How to protect my portfolio!
Sure, there is more to buy, but this also shows that many investors are not taking BTC seriously. So does it feel like it's too late now? According to Bitwise CIO, it's just a gut feeling.
Bitcoin always feels slow. We've always done that, and we'll always do that.
Matt Hogan, Bitwise CIO
Time in the market trumps market timing.
And Hogan answers another burning question: Is there a chance to scoop up even more Bitcoin at a discount? Hogan thinks so.
What people really want to know is does Bitcoin have pullbacks that allow lower level space to be allocated? The answer is “Yes, probably.” Bitcoin is volatile and you should expect a sharp decline.
Matt Hogan, Bitwise CIO
But timing such pullbacks can be difficult and comes with risks, including the risk of losing money, he says. Hogan highlights important details. Even though the price of Bitcoin has fallen more than 70% since its peak in November 2021, those who bought at the highest price will see a 42% increase in their initial investment.
A similar situation existed in 2017. Did you buy high and ride all the way to the low? With HODLing, you could have made a 400% profit, Hogan explains.
Remember this the next time you're timing the market. Of course, this is not financial advice. Do your own research and decide what's right for you.
Related: Goldbug's Peter Schiff calls Bitcoin the biggest threat to U.S. economic security
However, Hogan believes that if you truly believe in the long-term success of the asset, the timing of your entry could leave you behind.
Let's take a look at Mr. Hogan's own personal story and how he coped when he first learned about Bitcoin.
First time I heard about Bitcoin […] It exceeded $1 for the first time. […] We had a one-hour meeting to discuss this new innovation. I didn't feel like buying it that day. I was so busy that I thought it might be too late.
Matt Hogan, Bitwise CIO
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