Cryptocurrencies have now become a major asset class, walking in line and league with leading safe haven assets like gold and silver. Bitcoin is now hitting a new all-time high of $125K, displaying its new identity as the “digital gold.” Amid all the latest crypto domain highlights, a new Morgan Stanley report has acknowledged the best way to explore crypto for high-risk portfolios, signaling the shift towards digital assets as the leading wealth-generating class to take over.
Also Read: Where Is Silver Headed Next? AI-Powered Commodity Market Prediction
Morgan Stanley Reveals How Much One Should Invest in Crypto
According to the latest Morgan Stanley report, the financial giant has revealed that a high-risk portfolio should have a 4% stake in cryptocurrencies. This new narrative marks a major shift, with financial services viewing crypto as a novel wealth-generating opportunity, provided the domain is explored with great care. The Morgan Stanley Global Investment Committee has advised its clients to allocate 2% to 4% of their stake towards crypto, depending on their risk appetite.
However, the committee was quick to outline how this allocation should be conservative, in the sense that it does not bring excessive volatility to such portfolios.
“While the GIC allocation models will not include explicit allocations to cryptocurrency. We aim to support our financial advisors and clients. Who may flexibly allocate to cryptocurrency as part of their multiasset portfolios,” the report said.
Bitcoin, Gold, and Silver Claiming New Highs
The world is now increasingly pivoting towards safe-haven assets, with gold, silver, and BTC emerging as the top winners lately. Gold and silver have long been touted as the safest assets available, but Bitcoin is new to the league, capturing a new high of $125K amid increased investor interest and momentum.
“There is a widespread rush into assets happening right now. As inflation rebounds and the labor market weakens, the Fed is CUTTING rates. The USD is now on track for its worst year since 1973, down over -10% YTD. The USD has lost -40% of its purchasing power since 2000. Take a look at this: The Fed is cutting rates into 4.0% annualized inflation since 2020. And the Fed is cutting rates into 2.9%+ Core PCE inflation for the first time since the 1990s. What’s really happening here is assets are pricing in a NEW era of monetary policy.”
Also Read: Gold Price Hits $3,924: Is $4,000 Within Reach By End Of This Week?