As Bitcoin continues to dominate headlines and start assimilating into portfolios globally, we in Singapore are asking a critical question: Is Bitcoin still a good investment in 2025? With its price soaring to a record US$111,000 in May 2025, fueled by global events like the U.S. presidential inauguration, national strategic treasuries and institutional adoption, Bitcoin remains a puzzle for many. Should we incorporate Bitcoin into our investment portfolios and consideration set?
The State of Bitcoin in Singapore: A Maturing Market
Singapore has long been a global hub for finance and innovation, and its crypto ecosystem is no exception. The Monetary Authority of Singapore (MAS) has fostered a progressive yet cautious regulatory environment, making us a hotspot for crypto startups and investors. However, a recent study showed that crypto ownership has dropped to 29% from 40% in 2024, signaling a more cautious approach among investors. However, this shift was seen as more of a rebalancing of portfolios rather than leaving the market altogether.
Why Bitcoin Appeals to Singaporean Investors
Bitcoin’s allure in Singapore stems from several factors:
- No Capital Gains Tax: Singapore’s tax-friendly environment is a major draw. Individual investors face no capital gains tax on Bitcoin profits, making it an attractive option for long-term holders. However, frequent traders may be subject to income tax if their activities are deemed business-related. Always consult a tax professional to understand your obligations.
- Institutional Adoption: Global players like BlackRock, Fidelity, and ARK Invest have boosted Bitcoin’s credibility through Bitcoin Exchange-Traded Funds (ETFs). Strategy (Previously MicroStrategy) has been consistently buying Bitcoin since 2020, and inspired other companies like Metaplanet in Japan, as well as our favourite meme stock, GameStop. Platforms like Coinbase, Crypto.com, and Independent Reserve, licensed by MAS, offer secure avenues for Singaporeans to buy Bitcoin.
- Hedge Against Uncertainty: Bitcoin is increasingly viewed as “digital gold.” A rising store of asset and an emerging global asset class. The US debt is ballooning out of control, and this has even caused Elon to beef with Trump over the Big Beautiful Bill. A decentralised, hard asset that cannot be controlled by any one party makes a lot of sense in this environment.
- Regulatory Clarity: The MAS regulates crypto under the Payment Services Act (PS Act), ensuring that licensed platforms like Coinbase and OKX comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. This provides us with a safe and transparent trading environment.
The Risks of Investing in Bitcoin in 2025
Despite its appeal, Bitcoin is not without risks, especially for Singaporean investors accustomed to stable markets:
- High Volatility: Bitcoin’s price is highly volatile. If you can’t stomach 30% draw backs, you will not find yourself getting that 100% gain.
- Security Concerns: Hacks, scams, and lost wallet credentials remain real threats. Secure storage practices, such as using hardware wallets like a Ledger Stax, or trusted exchanges with cold storage solutions are key to protecting your digital assets.
- Market Cycle: If you believe in the Bitcoin 4-year cycle, we are into the last bull phase, and if history repeats, we may be looking at 1 to 2 years of a bear cycle coming. Although that seems unlikely, given the amount of institutional involvement, no bear market was ever truly anticipated.
Bitcoin Price Outlook for 2025 and Beyond
Market analysts are bullish on Bitcoin’s trajectory. Standard Chartered predicts Bitcoin could reach US$200,000 by the end of 2025, with predictions from other analysts going even higher, some as high as $500,000.
Over the long term, if you were to broaden your horizon beyond the next 12 months, you can see very clearly that Bitcoin has always been on the rise.
Is Bitcoin Right for Your Portfolio?
For Singaporeans, Bitcoin’s investment potential in 2025 hinges on your financial goals and risk tolerance. Here’s a quick guide to help you decide:
- If You Have High Risk Tolerance: Bitcoin’s potential for high returns makes it appealing for those comfortable with volatility. If it’s your very first time, limit your allocation to 10% or less of your portfolio to dip your toes in.
- If You’re Financially Stable: Ensure you have sufficient liquidity such that you should not have to be forced to sell your Bitcoin, potentially at a loss.
How to Start Investing in Bitcoin in Singapore
- Choose a Licensed Exchange: Opt for MAS-regulated platforms. I personally spread my holdings across multiple exchanges to mitigate exchange risk.
- Complete KYC Verification: Provide your ID and proof of address to meet MAS requirements. Enable two-factor authentication (2FA) for added security.
- Fund Your Account: Use SGD via FAST transfers, PayNow, or debit/credit cards.
- Start Small with DCA: Invest a fixed amount regularly to reduce the impact of price swings. Alternatively, I personally subscribe to the lump sum method, so it’s really up to your personal risk tolerance levels.
- Secure Your Bitcoin: Store your assets in a hardware wallet when you’re comfortable doing so, especially as your holdings on exchanges grow.
Conclusion: Should You Invest in Bitcoin in 2025?
Bitcoin remains a compelling investment for Singaporeans with high risk tolerance and a long-term outlook. Fiat currency is losing value every year, and we’re no longer able to save our way to a secure future.
Instead, we’re all full time workers, and part time investors, looking for a way to protect our savings via investments into real estate, gold, equity, fine art, Pokemon cards and literally anything other than cash.
Bitcoin has outperformed everything over the last decade, and with new institutional and national interest, I firmly believe this trend is just going to accelerate. So in conclusion, yes, if you have not invested in Bitcoin yet, you should invest in bitcoin in 2025, 2026 and every year after.