American multi-billionaire Thomas Peterffy recommends that investors have some Bitcoin, suggesting a 2-3% portfolio exposure to the premier asset.
Bitcoin is becoming a crucial global financial tool. Termed the digital gold, the asset’s intrinsic value lies in its limited cap and decentralized nature.
Notably, Bitcoin’s recent emergence into the limelight has seen public entities scramble for a share of the premier asset. Wealth managers have also started recommending the asset to their clients, signaling growing institutional interest.
Meanwhile, the 46th wealthiest man in the world has recently called on investors to own Bitcoin. In an interview at the Bloomberg Talk podcast, Thomas Peterffy implied that holding the flagship cryptocurrency is a necessity.
Peterffy Suggests a Substantial Portfolio Exposure to Bitcoin
The Interactive Broker’s chair called cryptocurrencies an “interesting” asset. He admitted that the demand for the asset class has recently surged considerably but expressed skepticism about their underlying value.
Peterffy stated that Bitcoin can “get to any price” as the asset is a figment of imagination. However, he recommended that every investor hold Bitcoin as it has enormous upside potential.
Furthermore, he prescribed a 2-3% net worth exposure to the premier asset. Notably, the billionaire investor allowed room for buying more allocation but insisted that more than 10% is too risky an exposure to Bitcoin.
Interactive Broker Chair Warns of a Bitcoin Downturn
Meanwhile, Peterffy asserted that Bitcoin may correct next year, citing an increase in margin balances. He then urged investors to be cautious and diminish leverage exposure to the cryptocurrency market.
Peterffy pointed out that the Chicago Mercantile Exchange (CME) margin charges on Bitcoin futures are extremely low, allowing investors to “overextend themselves.” Hence, a correction in Bitcoin price would be catastrophic for investors.
Notably, Peterffy’s correction speculation contradicts the consensus among market analysts for next year’s Bitcoin outlook. For context, Bernstein and Standard Chartered analysts provided a bullish outlook for the premier asset, insisting that a surge to $200,000 by next year is conservative.