Bitcoin Is Booming Again — Should It Have a Place in Your Retirement Plan?

July 11, 2025

Bitcoin has been on a tear, recently breaking through resistance and making headlines across financial media.

That’s prompted a familiar question from federal employees and retirees: Should I invest in Bitcoin for retirement?

Let’s unpack that—without the hype.

The Allure (and the Risk)

Bitcoin’s appeal is easy to understand: it’s decentralized, limited in supply, and has outperformed nearly every traditional asset class over the last decade.

Some even call it "digital gold."

But it’s also wildly volatile.

Since 2021 alone, Bitcoin has soared to $69,000, plummeted below $17,000, and now surged again.

Would you feel comfortable seeing your retirement nest egg swing by 60% in a single year?

Your TSP Won’t Touch It

For now, the Thrift Savings Plan (TSP) offers no exposure to Bitcoin or any cryptocurrency.

That’s by design: the TSP is built for long-term, disciplined investing—not speculative plays.

That doesn’t mean you’re out of options. If you have an IRA or brokerage account outside your TSP, some platforms allow small crypto allocations or Bitcoin ETFs.

But here’s the key:

If you decide to invest in Bitcoin, treat it like hot sauce: a dash can enhance the mix—too much can burn you.

3 Questions to Ask Before You Buy Bitcoin

1) Can I afford to lose this money?
Crypto markets can be brutal. Don’t risk money you’ll need in the next 5–10 years.

2) Does this align with my retirement plan?
Diversification is smart. But any crypto exposure should complement—not compete with—your TSP, pension, and Social Security.

3) Do I understand what I’m investing in?
Bitcoin isn’t a stock. It doesn’t generate earnings or pay dividends. Know what you own—and why.

Bottom Line

Bitcoin may be here to stay. But that doesn’t mean it deserves the main seat at your retirement table—especially if your plan is already working.

Focus on what you can control: maxing your TSP contributions, optimizing your fund mix, minimizing fees, and building tax-efficient income.

Everything else? Sprinkle, don’t pour, for the best results.

—FWR