BlackRock Sticks by 1-2% Bitcoin Allocation Amid Economic Concerns

BlackRock has reaffirmed its stance on Bitcoin, stating that it's still a viable option for portfolio diversification. The investment firm recommends allocating between 1% and 2% of a traditional 60/40 investment strategy to Bitcoin.

The recent spike in Bitcoin's price can be attributed to investors' growing concerns about macroeconomic news, including rising inflation and the national debt. BlackRock notes that Bitcoin's price has become less volatile in recent years due to increased institutional adoption and the popularity of Bitcoin ETFs.

Investors are reconsidering Bitcoin as a safe haven for their money, pushing its price up by over 22% in the past two weeks. However, it's essential to note that owning some cryptocurrencies can add volatility to an investment portfolio.