Wall Street Institutions Recommend Modest Bitcoin Allocations

Investors are increasingly turning to digital assets to diversify their portfolios and hedge against traditional market risks.

In a significant shift in institutional thinking, major financial institutions including Bank of America, Fidelity, and Morgan Stanley are advising clients to allocate a small percentage of their portfolio value to Bitcoin. The recommended allocations vary from 1% to 5%, reflecting a cautious but deliberate approach to cryptocurrency investment.

Firms such as BlackRock and Fidelity are issuing long-term forecasts that reinforce the potential for significant growth in Bitcoin's value. In 2025, Larry Fink, CEO of BlackRock, projected that Bitcoin could reach $700,000 per coin by 2030, citing concerns about currency debasement and global financial instability.

Analysts at JPMorgan have also highlighted the potential for Bitcoin to compete with gold as a store of value. Their projections suggest that Bitcoin's market capitalization would need to equal roughly $8 trillion in private-sector gold investment to reach $266,000 per coin.