BlackRock says BTC remains a valid portfolio allocation asset

BlackRock said in a report by Robbie Mitchnick, its head of digital assets, and the firm’s research team that the core investment case for Bitcoin remains intact as an important emerging global alternative monetary asset and a unique portfolio diversifier. The report attributed Bitcoin’s roughly 50% decline from its peak to deleveraging within the crypto market and capital outflows, rather than to any structural flaw in Bitcoin itself. It added that a modest 1% to 2% Bitcoin allocation in a 60/40 portfolio is most effective at improving risk-adjusted returns.