Investors Should Hold 4% Bitcoin in Portfolio, Says Bank of America, as BTC Soars Above $92K

Group 1: Bank of America's Recommendations - Bank of America recommends its wealth management clients to hold up to 4% of Bitcoin and other crypto assets, indicating a shift towards mainstream portfolio construction for cryptocurrencies [1][7] - The bank will begin coverage of four spot Bitcoin exchange-traded funds (ETFs) in January, including offerings from Bitwise, Fidelity, Grayscale, and BlackRock, which provide direct exposure to Bitcoin [2] - Chris Hyzy, chief investment officer at Bank of America Private Bank, suggests a modest allocation of 1% to 4% in digital assets for investors comfortable with volatility, with the lower end being more suitable for conservative investors [3] Group 2: Bitcoin Market Dynamics - Bitcoin prices have recently climbed above $92,000, reaching approximately $92,265, with potential bullish momentum suggesting a rally towards $98,139 [4] - Despite the recent price increase, Bitcoin remains down over 6% for the year 2025 [5] - The return of net inflows into Bitcoin and Ethereum ETFs after previous outflows indicates renewed institutional interest in the crypto market [7] Group 3: Broader Industry Trends - Bank of America's move reflects a broader trend among major U.S. financial institutions entering the crypto space [6] - JPMorgan has launched a blockchain-based deposit token for institutional clients and is introducing a private tokenized money-market fund backed by Ethereum, showcasing the growing integration of traditional finance with blockchain technology [8]