Morgan Stanley recommends 4% allocation for cryptocurrencies in high-risk portfolios, 2% in moderate-risk. The report advises against crypto allocation in wealth preservation portfolios due to potential volatility and correlation with other assets during market stress.

CEO of Bitwise calls Morgan Stanley report “huge” news, signaling mainstream adoption. Growing institutional acceptance of crypto, especially by banks and financial services companies, attracts more capital to the crypto markets, solidifying crypto’s legitimacy as an asset class.

Bitcoin reaches new all-time high above $125,000 as exchange balances hit six-year low. BTC viewed as digital gold by Morgan Stanley analysts, gaining institutional adoption as a treasury reserve asset and through investment vehicles like ETFs. Rise attributed to government shutdown and increase in asset prices.

Investment analysts foresee widespread asset rush amid inflation rebound and weakening labor market. As Bitcoin hits record high, safe-haven assets also see a surge. The Kobeissi Letter analysts highlight current market trends towards various asset classes.

Read more at Cointelegraph: Crypto Allocation of up to 4% Ok in Higher Risk Portfolios