JPMorgan Analysts Urge Investors to Allocate Part of Their Portfolios to Bitcoin

JPMorgan analysts recommended their clients move 1% of their investment portfolios into Bitcoin and other digital assets as a hedge against stocks, bonds and commodities. Bloomberg reports.

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“Investors could allocate up to 1% of their portfolios to cryptocurrencies to improve risk-adjusted returns,” said strategists Joyce Chang and Amy Ho.

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On February 21, the price of Bitcoin reached $58,000. On February 23, the price of the first cryptocurrency reached the $45,000 mark. As of writing, the asset was trading at around $46,600. The market capitalization of digital gold stands at $859 billion, according to CoinGecko.

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According to a report by analytics firm Glassnode, in February large Bitcoin holders reduced their holdings by 140,000 BTC. They could have realized profits at all-time highs.

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Earlier, JPMorgan urged investors to forget about digital gold in favor of fintech, and called the first cryptocurrency an “economic attraction”.

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Analysts at the financial holding have previously criticized Bitcoin for its volatility. In their view, this poses an obstacle to corporations placing liquidity reserves in cryptocurrency.

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Earlier, JPMorgan expressed willingness to support Bitcoin trading if there is client demand.

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