Ric Edelman sees Bitcoin surging to $500,000 on long-term demand
Ric Edelman urges investors to rethink 60/40 portfolio
Ric Edelman, founder of Edelman Financial Engines and the Digital Assets Council of Financial Professionals (DACFP), has made a bold call urging investors to rethink the traditional 60/40 portfolio allocation.
In his recent whitepaper, Edelman argued that technological advancements and increased life expectancies have rendered the old model obsolete, reports Cryptopolitan.
He proposed a new framework where conservative investors should allocate at least 10% of their portfolios to crypto, moderates should aim for 25%, and aggressive investors should consider as much as 40%. Edelman emphasized that ignoring crypto in a modern portfolio equates to shorting the asset class, given its growing prominence and increasing institutional acceptance.
Edelman Makes a Strong Bullish Case for Bitcoin and Crypto’s Future
Edelman’s bullish stance extends to Bitcoin specifically, predicting that BTC could eventually reach $500,000 per coin. He based this forecast on basic supply and demand mechanics, estimating that even a modest 1% allocation from the $750 trillion global asset pool could drive Bitcoin’s price significantly higher. Edelman cited Tether’s $13 billion profit in 2024 as evidence of the crypto sector’s maturity and profitability, surpassing giants like McDonald’s and BlackRock.
He also credited President Donald Trump’s 2024 election win and the administration’s pro-crypto policy shifts as further validation that crypto has entered a de-risked phase, positioning it as a core investment rather than a speculative side bet.
Industry Reactions and Broader Portfolio Implications
Edelman’s recommendation has sparked significant debate within both the financial advisory and crypto communities. Bloomberg analyst Eric Balchunas called it the strongest crypto endorsement from traditional finance since BlackRock’s CEO Larry Fink publicly embraced Bitcoin ETFs. Given Edelman’s influence over the Registered Investment Advisor (RIA) community, his support carries substantial weight.
However, some critics noted that Edelman should have explicitly emphasized Bitcoin rather than broadly advocating for crypto exposure, though most acknowledge Bitcoin’s dominance in the sector. Meanwhile, Bitwise’s André Dragosh countered Edelman’s dismissal of the 60/40 model, attributing its current challenges to inflation rather than obsolescence. Still, Dragosh agreed on the importance of diversifying into hard assets like gold and Bitcoin to hedge against inflationary pressures.
Recently we wrote that Bitcoin price opened the new week on a weak footing after posting three consecutive green daily candles over the weekend.
