JPMorgan strategists believe that investors can invest up to 1% of their capital in bitcoin. In this way, they will reduce the risks of losses from fluctuations in the market for traditional assets such as stocks and commodities.
Such a low share of cryptocurrency is explained by the presence of risks of periodic exacerbation of BTC volatility, according to a note prepared by strategists Amy Ho and Joyce Chang.
They recalled that this week the value of bitcoin fell by 10%, but since the beginning of 2021 it has added 60%.
The analyst review notes:
In a portfolio with multiple assets, investors can set aside up to 1% of their funds and channel them into cryptocurrency. This will improve efficiency for overall risk-adjusted return.
JPMorgan’s memo was released amid growing interest in bitcoin from institutional investors. It is already known that financiers such as Paul Tudor Jones and Stan Druckenmiller have already bought BTC.
MicroStrategy and Tesla have also invested in cryptocurrency.
JPMorgan strategists admit that bitcoin can be used as a hedging instrument, for example, against the US dollar and the Japanese yen. It can perform a similar function in relation to securities.
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