In a significant shift within the investment landscape, Ric Edelman, the founder of the Digital Assets Council of Financial Professionals, has firmly stood by his bold recommendations from June, advocating for substantial cryptocurrency allocations in investment portfolios. Despite Bitcoin’s current price hovering below $90,000—considerably lower than its record highs—Edelman views this downturn as a prime buying opportunity for investors.
Edelman recently expressed, “If you liked Bitcoin at $100,000 or $125,000, you have to love it at $85,000.” His sentiments echo the common advisory philosophy that advises clients to take advantage of market dips, likening the present environment for cryptocurrencies to traditional market corrections seen in stock investments. According to him, market declines often represent valuable buying opportunities for long-term investors, a principle he believes holds true for cryptocurrencies as well.
In his June white paper, Edelman made waves by recommending that conservative investors allocate 10% of their portfolio to cryptocurrencies, and more aggressive investors consider as much as 40%. This marked a departure from his previous advice, which suggested only “low single-digit” investments in digital assets. The change in stance is attributed to what he describes as “dramatically improved regulatory clarity and institutional engagement” within the crypto space.
Bloomberg Senior ETF Analyst Eric Balchunas highlighted the significance of Edelman’s endorsement, calling it a critical moment in financial history akin to the influential remarks made by Larry Fink of BlackRock. At the time of Edelman’s paper release, Bitcoin had seen a notable surge of over 32% in just ten weeks, driven by favorable regulatory policies under the Trump administration and increasing engagement from institutional investors.
Nevertheless, Bitcoin has faced challenges, recently dipping as low as $81,000 as economic uncertainties continue to affect risk assets. Despite these fluctuations, Edelman remains optimistic, emphasizing that the ongoing engagement from institutional investors and the broader adoption of blockchain technology will support future price growth. He referenced significant investments from major institutions, including Harvard University’s reported $116 million position in the BlackRock iShares Bitcoin Trust—an exchange-traded fund that tracks Bitcoin.
Edelman perceives the current market dynamics as routine, stating that the price volatility is comparable to other assets that experience profit-taking after significant rises. He noted that recent declines may correlate with early investors cashing out on their initial investments.
In his projections, Edelman anticipates Bitcoin reaching a remarkable $19 trillion market capitalization, a staggering increase from its present valuation of nearly $1.8 trillion. He also argues that age should not deter individuals from considering digital assets, advocating that even those in their nineties should explore cryptocurrency investments based on risk tolerance, not merely their age.
Edelman concludes that Bitcoin’s recent challenges demonstrate its maturation as a mainstream asset class. This evolution is indicative of the growing recognition and treatment of Bitcoin by institutional investors, a transformation that he asserts signals stability, permanence, and increasing acceptance of cryptocurrencies in the broader financial ecosystem.
