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MARA CEO Advocates “Invest And Forget” Approach To Bitcoin, Citing Strong Historical Performance

January 4, 2025
in Bitcoin
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MARA CEO Advocates “Invest And Forget” Approach To Bitcoin, Citing Strong Historical Performance
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In a recent interview with FOX Business, Fred Thiel, CEO of Bitcoin (BTC) mining firm MARA Holdings, advocated an “invest and forget” strategy for retail investors looking to gain exposure to the world’s leading digital currency.

Thiel Cites Positive Historical Performance Of Bitcoin

BTC continues to trade within the mid-$90,000 range after a recent pullback from its all-time high (ATH) of $108,135. While crypto analysts keep a close eye on the flagship cryptocurrency’s price movements, major BTC holders appear less concerned about short-term fluctuations.

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Citing Bitcoin’s historical performance, Thiel advised retail investors to adopt a long-term approach. He noted that Bitcoin has closed the year at a lower price only three times in its 14-year history, including during the peak of the COVID-19 pandemic. Thiel stated:

My recommendation, to my kids, for example, is they put just a little bit away every month in Bitcoin and forget about it. Over two, three, four years, it grows, and that’s what people do.

Thiel also emphasized BTC’s consistent growth, highlighting that it has appreciated annually by an average of 29% to 50%. However, BTC remains a high-risk asset, and risk-averse investors may shy away until the asset class achieves broader acceptance or gains official recognition from a major global economy.

For instance, the establishment of a US strategic Bitcoin reserve could solidify the cryptocurrency’s legitimacy as an asset and potentially spark a domino effect, encouraging other nations to follow suit. Thiel described such a reserve as a key catalyst for driving Bitcoin’s price to new highs in 2025.

Additionally, Thiel pointed to high institutional involvement through Bitcoin exchange-traded funds (ETFs) and favorable digital asset regulations under the Trump administration as other factors that could support BTC’s growth this year.

Although Thiel’s advice was aimed at retail investors, recent data suggests that many are already planning to increase their Bitcoin holdings. According to a poll conducted by MicroStrategy CEO Michael Saylor, over 75% of 65,164 respondents intend to end 2025 with more BTC than they started with.

The poll reflects growing enthusiasm among retail investors, buoyed by bullish developments in 2024 such as ETF approvals, the Bitcoin halving, and Trump’s election victory in November.

More Companies Adding BTC To Balance Sheet

Bitcoin adoption among corporations continues to grow. While MARA Holdings already holds BTC on its balance sheet, rival crypto mining company Hut 8 recently expanded its holdings to more than 10,000 BTC.

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Other firms, such as Japan-based Metaplanet and Canada’s Rumble, joined the Bitcoin movement in 2024. Additionally, Bitcoin ETFs have accumulated over 1 million BTC in under a year since their launch.

However, skepticism remains. Japan’s Prime Minister recently expressed caution about the idea of establishing a strategic Bitcoin reserve, reflecting lingering doubts in some quarters. At press time, BTC trades at $97,229, up 0.7% in the past 24 hours.

BTC trades at $97,229 on the daily chart | Source: BTCUSDT on TradingView.com

Featured image from Unsplash, Chart from TradingView.com

Credit: Source link

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