economy
Bitcoin's Latest Plunge Revives the Debate Over Owning It—and Whether It's Just 'Crypto Being Crypto'
The cryptocurrency's latest selloff is forcing investors to revisit what role, if any, bitcoin should play in a portfolio.
TL;DR
- Bitcoin has lost nearly half its value since its record high in July 2025.
- The recent selloff is attributed to factors like profit-taking, expectations of prolonged higher interest rates, and shifting investor interest to other opportunities like AI.
- Bitcoin is often promoted as a portfolio diversifier due to its low correlation with traditional assets, but its volatility makes it a risky store of value.
- Financial experts suggest a 1% to 5% allocation for bitcoin in an investor's portfolio to mitigate risk while still allowing for upside exposure.
- Some professionals view bitcoin not as an investment but as speculation because it doesn't generate earnings or income, unlike stocks, bonds, or real estate.