Market analyst James Bianco warns investors against using leveraged products for outsized returns, despite assets like Bitcoin trading near record highs. Bianco advocates for caution, emphasizing that excessive leverage can turn winning trades into costly mistakes, urging a balanced approach with fixed income allocations for steady returns.

Bianco notes that Bitcoin acts more as a levered risk asset in portfolios, moving in the same direction as the stock market rather than as a hedge. He contrasts Bitcoin’s role with Ethereum’s recent rally, attributing Ethereum’s surge to U.S. policy initiatives like the GENIUS Act and increased institutional interest.

Read more at Yahoo Finance: Bitcoin is not fighting the system, warns veteran strategist