Bitcoin’s climb to $35,000 is helping to restore its reputation in the world of investment advice.
The world’s largest cryptocurrency has more than doubled from last year’s epic collapse, a significant development when stocks have dropped and bond yields are surging. With the Federal Reserve planning to keep interest rates high, and geopolitical tensions threatening financial stability, some advisors say adding Bitcoin to an investment portfolio can be a good way to diversify.
It’s quite a change from last November when FTX’s bankruptcy — which led to the fraud charges that put Sam Bankman-Fried on trial — sent cryptocurrencies into a spiral, with Bitcoin trading below $16,000. And while many wealth advisors still caution against getting involved with the asset, which is prone to volatility, others argue a small allocation can help spread out risk in your investments.
Read the full story on Bloomberg here.