Bitcoin’s latest price action near $110,000 has sparked renewed discussion about the psychological challenges of holding cryptocurrency through market cycles. As Bitcoin tests critical resistance at $110K, industry experts are sharing insights about the mental fortitude required for long-term investment success.
The 90/10 Rule of Bitcoin Investment Psychology
Thomas Fahrer, co-founder of Apollo, has introduced what he calls the ’90/10 rule’ of Bitcoin investing – suggesting that holding BTC feels like hell 90% of the time but heaven for the remaining 10%. This observation comes as Bitcoin whales book substantial profits near current levels.
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Understanding Bitcoin’s Deflationary Nature
The analysis highlights Bitcoin’s unique deflationary design, with its fixed supply cap of 21 million coins contrasting sharply with traditional fiat currencies. This fundamental aspect has contributed to Bitcoin’s long-term value proposition, despite short-term volatility.
Historical Performance Metrics
Recent data shows compelling evidence of Bitcoin’s growth potential. From 2020 to 2025, while $100 in fiat currency depreciated to $76, the same amount invested in Bitcoin grew to $1,201 – a stark illustration of the cryptocurrency’s potential as a store of value.
Expert Insights on Fractional Investment
Robert Kiyosaki’s perspective on fractional Bitcoin ownership adds an important dimension to the discussion, suggesting that even small positions of 0.01 BTC could prove significant in the long term. This aligns with growing institutional interest, as major players continue accumulating substantial positions.
FAQ Section
Why is Bitcoin considered a deflationary asset?
Bitcoin’s fixed supply cap of 21 million coins and regular halving events make it inherently deflationary, unlike traditional fiat currencies that can be printed indefinitely.
What makes holding Bitcoin psychologically challenging?
The high volatility and extended periods of price consolidation or decline can test investors’ resolve, leading to the ’90/10 rule’ observation where patience through difficult periods is key to success.
Is it necessary to own a full Bitcoin to invest?
No, Bitcoin can be purchased in fractions, with even small amounts like 0.01 BTC potentially providing significant returns over time.