Over 106 million people use digital currencies, and JPMorgan advises investing 1% of investment portfolio in bitcoin
JPMorgan advises investing 1% of investment portfolio In bitcoin
JPMorgan strategists are confident that investing 1% of a portfolio in cryptocurrencies is a smart measure to hedge the risks of the existing financial system.
“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,” analysts Joyce Chan and Amy Ho said.
The strategists of the American bank pointed out that the risks of investing in stocks, bonds and commodities are increasing, so BTC is excellent for hedging such risks. However, experts noted the rather high volatility of digital assets, advising investors to invest a small percentage of their portfolio in cryptocurrencies.
Research: over 106 million people use digital currencies
More than 106 million people use digital currencies. This is stated in the report of the Crypto.com crypto platform. The company’s research covers information from 24 exchanges where digital assets are traded. In January alone, the number of BTC holders grew by almost 16%.
Analysts believe that a serious rise in the bitcoin rate turned out to be a key motive for the growth of new BTC holders. Recently, the value of the first crypto coin rose above $57,000. Recently, however, the BTC rate has dropped significantly.
Cryptocurrency traders lost $1.18 billion due to liquidation of margin positions during another fall of the main cryptocurrency. According to the bybt service, almost 170 thousand traders have lost their margin positions.