Bitcoin Allocation Debate Heats Up Amid 44% Correction

The question of how much Bitcoin should be in a diversified investment portfolio has become one of the most contested topics in personal finance. The crypto market is currently in a state of unease, with Bitcoin trading around $72,000 in March 2026, down 44% from its October all-time high.

Ric Edelman, founder of Edelman Financial Engines, recommends up to 40% of a portfolio be invested in Bitcoin. He argues that the traditional 60/40 portfolio model is obsolete and that people living to 100 need higher returns over longer horizons.

Edelman's reasoning also includes the growing demand for crypto, with only about 5% of the global population owning it. The infrastructure for owning Bitcoin has never been more robust, with record institutional adoption.

However, not all major financial institutions agree on the optimal allocation to Bitcoin. BlackRock recommends 1-2% of a multi-asset portfolio be invested in Bitcoin, citing that at this level its share of portfolio risk is comparable to an average 'Magnificent Seven' tech stock.