Bitcoin Price Tumbles Amid Institutional Adoption
Bitcoin has been trading around $72,000 in March 2026, down 44% from its October all-time high of $126,198. The crypto market is experiencing a state of unease, with the Crypto Fear & Greed Index sitting at 26, indicating 'fear' territory. Despite this drawdown, institutional adoption remains strong, with U.S. spot Bitcoin ETFs attracting $56 billion in cumulative net inflows since their launch in January 2024.
Ric Edelman, a prominent financial advisor, has been urging investors to put as much as 40% of their portfolios into Bitcoin. He argues that the traditional 60/40 portfolio model is obsolete and that banks can now trade, custody, and lend against Bitcoin, making it an attractive investment opportunity.
However, not everyone agrees with Edelman's views. BlackRock's Investment Institute recommends allocating 1% to 2% of a multi-asset portfolio to Bitcoin, citing its risk contribution as comparable to that of a 'Magnificent Seven' tech stock. JPMorgan's research team also endorses up to 1% allocation for efficiency gains in overall risk-adjusted returns.