Bitcoin Allocation Debate Heats Up as Edelman Recommends Up to 40%

The debate over how much Bitcoin should be in an investment portfolio has reached new heights as the cryptocurrency's price continues to fluctuate. In March 2026, with Bitcoin trading around $72,000, down 44% from its October all-time high of $126,198, prominent financial advisor Ric Edelman is urging investors to consider allocating up to 40% of their portfolios to the asset.

Edelman's reasoning centers on his belief that the traditional 60/40 portfolio model is obsolete due to changing demographics and increasing demand for crypto assets. He projects Bitcoin reaching $500,000 by the end of the decade, calling it 'simple arithmetic' based on expected allocation flows into the asset.

However, not everyone agrees with Edelman's views. BlackRock's Investment Institute recommends 1% to 2% of a multi-asset portfolio, citing that at this level Bitcoin's share of portfolio risk is comparable to that of an average 'Magnificent Seven' tech stock. JPMorgan's research team endorses up to 1% for efficiency gains in overall risk-adjusted returns.

Fidelity and other independent analyses converge on the 2% to 5% range, with Fidelity recommending 2% to 5%, while Bitwise identifies 5% as optimal. However, crypto becomes the primary driver of maximum drawdown at this level, according to Bitwise's CIO Matt Hougan.