Bank of America Recommends 1-4% Crypto Portfolio Allocation

Group 1 - Bank of America recommends clients allocate up to 4% of their portfolios in cryptocurrency following significant price fluctuations in Bitcoin [1][2] - Bitcoin experienced a decline from a $126,000 all-time high in October to lows near $82,000 in November, stabilizing around $90,000 by December 2 [1] - The firm plans to begin coverage of four Bitcoin ETFs in 2026, highlighting its extensive client base and digital user engagement [3] Group 2 - Corporate demand for cryptocurrencies increased in the last week of November, with crypto ETPs recording $1.07 billion in inflows, driven by expectations of a US rate cut [4] - Bitcoin, Ethereum, and XRP saw significant inflows of $464 million, $309 million, and a record $289 million, respectively [4] - Despite volatility, Strategy's shares rebounded after a slump, and Michael Saylor confirmed the purchase of an additional 130 BTC, raising total holdings to 650,000 BTC [5] Group 3 - JPMorgan's portfolio manager noted a divergence between Bitcoin's negative performance in November and Gold's rally above $4,000, indicating potential market risk [6] - This divergence may suggest investors are positioning for a steeper yield curve, which historically benefits gold [7] - Signs of economic strength were observed in big tech stocks and pharmaceutical firms, indicating resilience in the market [7]