As of early May 2025, Bitcoin's price stands at approximately $95,728, showcasing its strong market presence and growing acceptance among institutional investors.

Major institutions, such as Strategy, have made significant investments in Bitcoin, holding over 553,000 BTC valued at more than $52 billion, which reflects their confidence in its long-term value.

Bitcoin's fixed supply of 21 million coins acts as a hedge against inflation, protecting purchasing power over time, unlike unlimited fiat currencies.

By allocating a portion of a portfolio to Bitcoin, investors can help mitigate the effects of inflation on the value of their money.

Incorporating Bitcoin into an investment strategy enhances portfolio diversification, improving risk-adjusted returns due to its low correlation with traditional assets like stocks and bonds.

Financial experts generally recommend a cautious approach to Bitcoin investment; for instance, BlackRock suggests a 1-2% allocation in a traditional 60/40 portfolio, while VanEck proposes a 6% allocation combined with Ethereum for better performance.

Opinions on portfolio allocation vary, with some experts advocating for a conservative 5% investment in Bitcoin, while others support higher percentages based on a strong belief in its future potential.

Investopedia also advises that exposure to cryptocurrencies should not exceed 5% of an individual's total investment portfolio.

Before investing in Bitcoin, individuals should evaluate their risk tolerance and investment goals, and consider consulting a financial advisor for personalized strategies.

In 2025, investing 5% of one's wealth in Bitcoin is recommended by financial experts and individual investors as a prudent strategy.