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https://cointelegraph.com/news/jpmorgan-report-endorses-1-allocation-to-bitcoin-as-a-hedge

JPMorgan Consumer Notice Promotes The 1% Allocation of Bitcoin as a Hedge

Cryptocurrency Investor – Jamie                                                                       

Bitcoin can operate as a safeguard against volatility in conventional assets.

Wall Street banking titan JPMorgan strategists indicated that a 1% portfolio exposure to Bitcoin would act as a protection against volatility in conventional asset groups like stocks, bonds, and commodities.

A limited percentage distribution is recommended to mitigate the possibility of any significant decline in Crypto asset management and an asset’s value. The price to buy Bitcoin has fallen 20% from its all-time high of over $58,000 on Feb. 21, but it is up 60% from the beginning of this year. As per Bloomberg, JPM economists Joyce Chang and Amy Ho mentioned:

“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.”

The endorsement comes in the wake of big Bitcoin acquisitions by Paul Tudor Jones, Stan Druckenmiller, Tesla, and MicroStrategy. The study added that BNY Mellon (Bank of New York Mellon Corporation) has confirmed plans to hold, move and offer digital assets to its customers.

JPMorgan economists stated that Crypto assets should be viewed as investment instruments and not to finance currencies like USD or JPY. The remarks seem to counter those made earlier in the month by other investment bank analysts who said that “crypto assets continue to rank as the poorest hedge for major drawdowns in equities.”

Talking to CNBC on Feb. 17, Ark Investment Management's Cathie Wood noted that if both companies put 10% of their cash into Bitcoin, it would contribute $200,000 to the asset's worth.

Cryptocurrency transactions rose in 2021 and it is not just the institutions that are stocking up. Trading company Robinhood announced that around 6 million new customers have purchased Cryptocurrencies on the site for the first two months of this year.

The estimates have dwarfed those for the previous year, suggesting that, amid the recent correction, the bullish momentum in the retail sector is still highly active. At the time of publication, the cost to buy BTC had fallen another 7% to $47,100 in exchange over the last 24 hours.

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