According to a report released on Thursday, BlackRock suggests a 2% Bitcoin allocation. Bitcoin experts at 10x Research recommend 5.77% BTC allocation in a multi-asset portfolio. Experts agree with BlackRock's insights on how Bitcoin can diversify portfolios without posing significant risks.
Bitcoin was steady above $101,000 as of Friday, up nearly 5% over the past seven days.
After Bitcoin (BTC) hit an all-time high of over $104,000 in early December, investors rushed to add the cryptocurrency to their portfolios. As major asset managers and institutions add Bitcoin to their holdings, BlackRock suggested investing up to 2% of a multi-asset portfolio in Bitcoin in a recent report.
Analysts at 10x Research believe this number is even higher, at 5.77% for a multi-asset portfolio, based on 2025 future projections for Bitcoin prices.
Experts recommend allocating 5.77% to Bitcoin based on 2025 forecasts
10x Research has published a report listing factors that may help determine the optimal Bitcoin allocation in a multi-asset portfolio. Experts consider three factors in their report:
How is Bitcoin expected to perform compared to stocks? How is stock expected to perform compared to bonds? And what is the overall volatility of the target portfolio? Is it?
Based on the 2025 forecast for Bitcoin price compared to the performance of US stocks, experts recommended allocating 5.77% to the largest cryptocurrency. BlackRock recommended a cap of 2%, suggesting it was a reasonable range and created risks similar to the Magnificent Seven, a group of mega-cap tech stocks.
Experts recommend a forward-looking strategy when determining the appropriate allocation to Bitcoin, rather than a strategy based on the liquidity and correlation of the global money supply.
Historically, Bitcoin bull markets have succumbed to regulatory pressures, regardless of their correlation to gold or the money supply. Experts argue that the US approval of spot Bitcoin ETFs has reduced this risk.
According to 10x Research's assessment, the downside risks associated with prolonged bear markets and sharp corrections in BTC prices have been systematically decreasing, building a strong case for including Bitcoin in multi-asset portfolios.
Over a relatively long period of time, Bitcoin's return factors have been proven to have little correlation with other asset classes, and the introduction of BTC could lead to portfolio diversification and optimization for investors.
As of this writing, Bitcoin is stable above $101,000 as of Friday.
