Why Investing 5% of Your Wealth in Bitcoin Makes Sense in 2025
Investing 5% of your wealth in Bitcoin (BTC) is increasingly being considered a prudent strategy by both financial experts and individual investors.
As of May 4, 2025 at 5:57 p.m. ET, Bitcoin is trading around $95,728, reflecting a robust market presence and growing institutional acceptance.
Why Allocate 5% of Your Portfolio to Bitcoin?
1. Inflation Hedge
Bitcoin’s fixed supply of 21 million coins positions it as a hedge against inflation. Unlike fiat currencies, which can be printed in unlimited quantities, Bitcoin’s scarcity can protect purchasing power over time.
Investors have noted that allocating a portion of their portfolio to Bitcoin helps counteract the diminishing value of money due to inflation.
