JPMorgan analysts have recommended their clients to move 1% of their investment portfolio to Bitcoin and other digital assets as a hedge against stocks, bonds and commodities, Bloomberg reports.
“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,” wrote JPMorgan’s strategists Joyce Chang and Amy Ho.
On February 21, the price of bitcoin reached $ 58,000. On February 23, the rate of the first cryptocurrency touched $ 45,000. At the time of writing, the asset is trading at $ 46,000. The market capitalization of digital gold is $ 859 billion.
In February, major bitcoin holders cut their assets by 140,000 BTC, according to a report by research firm Glassnode. They could have taken profits at maximum levels.
Recall that on February 23, JPMorgan called on to forget about digital gold in favour of fintech and called the first cryptocurrency an “economic attraction”.
Financial holding analysts have criticized Bitcoin for its volatility before. In their opinion, this serves as an obstacle for corporations to place liquidity reserves in cryptocurrency.
Earlier, JPMorgan expressed its readiness to support bitcoin trading if there is demand from customers.