Wall Street investment giant JeepMorgan has announced in a statement to its customers that they will dedicate 1% of their portfolio to Bitcoin. According to the company, investing in digital currencies can act as a safeguard against traditional asset fluctuations.
to the the report Coin Telegraph, strategists at JPMorgan, a financial services and banking giant on Wall Street, believe that allocating 1 percent of its assets in the portfolio to Bitcoin could serve as a shield against fluctuations in the value of traditional forms of assets such as corporate stocks, bonds and Economic goods operate.
To reduce the damage caused by the possible collapse of digital currencies, JPMurgan strategists have recommended a small percentage for investing in bitcoin. Bitcoin is now 20 percent below its $ 58,000 high on February 21, but its price has risen 60 percent since the beginning of the year.
According to Bloomberg, Joyce Chang and Amy Ho, strategists at Jaipur Morgan, wrote in a letter to the company’s customers:
In a portfolio of various forms of assets, the investor can allocate 1% of his portfolio to digital currencies to increase returns and control overall risk.
These statements are influenced by the major investments of large companies such as Paul Tudor Jones, Stan Druckenmiller, Tesla and MicroStrategy. The Bloomberg Report also states that New York Mellon Bank (BNY Mellon) intends to offer digital currency trust, transfer and issuance services to its customers.
GPS currencies analysts added in the report that digital currencies should be considered as an investment tool and are different from exchange currencies such as the US dollar and the Japanese yen.
These statements contradict the views of other strategists of this bank. They said earlier this month:
Digital currencies continue to have the weakest performance in preventing sharp fluctuations in capital values.
Cathie Wood, CEO of Ark Invest, told CNBC that if all companies invested 10 percent of their liquidity in bitcoin, it would cost $ 200,000. Digital currency will be added.
The purchase of digital currencies has grown significantly in 2021, and this increase includes small investors in addition to large institutional investors. In the first two months of 2021 alone, about 6 million users purchased digital currency from their platform, according to Robinhood, a trading services company that also supports the buying and selling of digital currencies.
This figure seems small compared to last year, however, it shows that despite the recent reforms, the retail sector continues to grow strongly. At the time of writing, the price of Bitcoin has fallen 7% in the last 24 hours to $ 47,100.