In a recent note to clients, strategists from JPMorgan suggested a one percent portfolio allocation to Bitcoin and other cryptocurrencies.
As reported by Bloomberg, JPM strategists Joyce Chang and Amy Ho opined that Bitcoin could serve as a hedge against fluctuations from traditional assets like bonds, stocks, and commodities. However, they advised clients to allocate a small percentage due to the risk of major downturns in Bitcoin’s value.
After setting a new all-time high above $58,000, the value of the digital asset slumped to less than $45,000 and has been struggling to recover ever since.
Chang and Ho told investors:
In a multi-asset portfolio, investors can likely add up to 1% of their allocation to cryptocurrencies in order to achieve any efficiency gain in the overall risk-adjusted returns of the portfolio.
