Bitcoin’s halving cycle no longer dictates prices due to institutional buyers and ETFs. Strategy and 10 other companies have invested over $1 billion each in Bitcoin. Analysts suggest a 5-10% portfolio allocation to Bitcoin. VanEck and 21Shares agree that halving cycles are symbolic but not price drivers.

Annual Bitcoin issuance is below 1%, less than gold’s inflation rate. Buyers now include ETFs, corporate treasuries, and governments, absorbing more Bitcoin than mined. Volatility is compressing, with fewer dramatic crashes. Deep-pocketed investors are accumulating large Bitcoin positions, but banks are not yet major holders.

Bitcoin’s potential as a hedge against economic uncertainty is noted, with gold prices rising 71% year to date. Institutional investor activity brings drawbacks, including centralized ownership. Bitcoin miners are exploring AI computing, and its safe-haven status remains unproven. Gold has been the best asset to hold.

Investors should consider Bitcoin’s volatility and unpredictability. Diversified portfolios may allocate 5-10% to Bitcoin. The Motley Fool’s Stock Advisor team does not recommend Bitcoin, suggesting other stocks for potential returns. It’s essential to assess risks and downsides before investing in Bitcoin.

Read more at Yahoo Finance: Is Bitcoin a Buy, Sell, or Hold in 2026?