The claim that BlackRock advises an 84.9% Bitcoin allocation in portfolios originates from a study the asset manager conducted in 2022.

This research analyzed Bitcoin’s performance between July 2010 and December 2021 and suggested that for a 60-40 portfolio (60% equities, 40% bonds), the optimal allocation to Bitcoin could be as high as 84.9%. The study highlighted Bitcoin’s potential for significant returns, despite its volatility.

However, it’s important to note that this allocation recommendation was theoretical and part of an analysis based on historical data. BlackRock emphasized that while Bitcoin’s unique return profile might justify such a high allocation under certain risk conditions, this does not represent their official advice to all investors.

The findings illustrate Bitcoin’s potential in certain investment scenarios rather than an endorsement for widespread portfolio reallocation on this scale.

This claim has sparked discussions due to Bitcoin’s extreme volatility, and some experts argue that such a high allocation might not suit most investors, especially those with lower risk tolerance.

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