Currencies32904
Market Cap$ 2.83T+1.79%
24h Spot Volume$ 49.22B-18.5%
DominanceBTC58.70%-0.17%ETH7.73%+0.01%
ETH Gas0.48 Gwei
Cryptorank
MainNewsInteractive ...

Interactive Brokers Chair Warns Against Bitcoin Allocation Over 10%


Dec, 12, 2024
2 min read
by Shalini Nagarajan
for Cryptonews
Interactive Brokers Chair Warns Against Bitcoin Allocation Over 10%

Interactive Brokers Chair Thomas Peterffy has said everyone should own Bitcoin, but in moderation. He advised investors to allocate between 2% to 3% of their net worth to Bitcoin. However, he cautioned against exceeding 10%, warning that doing so “would be very dangerous.”

In a Bloomberg podcast published on Thursday, Peterffy admitted that he’s “scared” of cryptocurrencies due to their volatility. Furthermore, he described them as “basically just a figment of imagination.”

“So it doesn’t have any underlying volume. The only value it has is the same as the paper dollar, which is nothing,” he said.

Bitcoin Hits $100K as Regulatory Optimism Rises, but Overleveraging Looms

Bitcoin has soared since Donald Trump’s election victory, driven by hopes for a more lenient cryptocurrency regulatory environment. It last traded around $100,959, up nearly 15% in a month.

Thomas Peterffy voiced concerns about the risks of overleveraging as margin balances grow rapidly. He warned that a sharp Bitcoin drop could cause widespread bankruptcies, burdening clearinghouses with the fallout.

Interactive Brokers began offering Bitcoin futures trading on the CBOE Futures Exchange in late 2017, and shortly after announced plans to include the Chicago Mercantile Exchange.

By Sept. 2021, Interactive Brokers expanded into crypto trading through a partnership with Paxos Trust Company, enabling US clients to trade and hold Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

Bill Miller Predicted Advisors Will Recommend 1-3% Bitcoin Allocation in Portfolios

Thomas Peterffy’s recommendation for crypto portfolio allocation aligns with advice from other prominent figures. In October, renowned investor Bill Miller predicted that within three to five years, financial advisors would start suggesting a 1% to 3% allocation to Bitcoin in investment portfolios.

Miller pointed to Bitcoin’s unique economic characteristics, saying it’s the only economic entity where the supply is unaffected by the demand or the price. He further explained that belief in Bitcoin’s future only requires the conviction that its demand will outpace its supply.

Moreover, Miller highlighted Bitcoin’s resilience, noting that unlike traditional financial systems which needed central bank interventions during crises, Bitcoin has never required a bailout to maintain its functionality.

The post Interactive Brokers Chair Warns Against Bitcoin Allocation Over 10% appeared first on Cryptonews.

Read the article at Cryptonews

Read More

Gold Drops, US Stocks Fall, But Bitcoin Holds On: Bloomberg Analysts Baffled – Here Are Their Comments

Gold Drops, US Stocks Fall, But Bitcoin Holds On: Bloomberg Analysts Baffled – Here Are Their Comments

The world's largest cryptocurrency, Bitcoin, surprised almost all markets as they fel...
Apr, 05, 2025
by Bitcoin Sistemi
Is Arthur Hayes Right About $1M Bitcoin? Analyzing His Controversial Thesis

Is Arthur Hayes Right About $1M Bitcoin? Analyzing His Controversial Thesis

Co-founder of BitMEX Arthur Hayes warns that U.S. Treasuries may no longer hold their...
Apr, 05, 2025
< 1 min read
by CoinEdition
MainNewsInteractive ...

Interactive Brokers Chair Warns Against Bitcoin Allocation Over 10%


Dec, 12, 2024
2 min read
by Shalini Nagarajan
for Cryptonews
Interactive Brokers Chair Warns Against Bitcoin Allocation Over 10%

Interactive Brokers Chair Thomas Peterffy has said everyone should own Bitcoin, but in moderation. He advised investors to allocate between 2% to 3% of their net worth to Bitcoin. However, he cautioned against exceeding 10%, warning that doing so “would be very dangerous.”

In a Bloomberg podcast published on Thursday, Peterffy admitted that he’s “scared” of cryptocurrencies due to their volatility. Furthermore, he described them as “basically just a figment of imagination.”

“So it doesn’t have any underlying volume. The only value it has is the same as the paper dollar, which is nothing,” he said.

Bitcoin Hits $100K as Regulatory Optimism Rises, but Overleveraging Looms

Bitcoin has soared since Donald Trump’s election victory, driven by hopes for a more lenient cryptocurrency regulatory environment. It last traded around $100,959, up nearly 15% in a month.

Thomas Peterffy voiced concerns about the risks of overleveraging as margin balances grow rapidly. He warned that a sharp Bitcoin drop could cause widespread bankruptcies, burdening clearinghouses with the fallout.

Interactive Brokers began offering Bitcoin futures trading on the CBOE Futures Exchange in late 2017, and shortly after announced plans to include the Chicago Mercantile Exchange.

By Sept. 2021, Interactive Brokers expanded into crypto trading through a partnership with Paxos Trust Company, enabling US clients to trade and hold Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

Bill Miller Predicted Advisors Will Recommend 1-3% Bitcoin Allocation in Portfolios

Thomas Peterffy’s recommendation for crypto portfolio allocation aligns with advice from other prominent figures. In October, renowned investor Bill Miller predicted that within three to five years, financial advisors would start suggesting a 1% to 3% allocation to Bitcoin in investment portfolios.

Miller pointed to Bitcoin’s unique economic characteristics, saying it’s the only economic entity where the supply is unaffected by the demand or the price. He further explained that belief in Bitcoin’s future only requires the conviction that its demand will outpace its supply.

Moreover, Miller highlighted Bitcoin’s resilience, noting that unlike traditional financial systems which needed central bank interventions during crises, Bitcoin has never required a bailout to maintain its functionality.

The post Interactive Brokers Chair Warns Against Bitcoin Allocation Over 10% appeared first on Cryptonews.

Read the article at Cryptonews

Read More

Gold Drops, US Stocks Fall, But Bitcoin Holds On: Bloomberg Analysts Baffled – Here Are Their Comments

Gold Drops, US Stocks Fall, But Bitcoin Holds On: Bloomberg Analysts Baffled – Here Are Their Comments

The world's largest cryptocurrency, Bitcoin, surprised almost all markets as they fel...
Apr, 05, 2025
by Bitcoin Sistemi
Is Arthur Hayes Right About $1M Bitcoin? Analyzing His Controversial Thesis

Is Arthur Hayes Right About $1M Bitcoin? Analyzing His Controversial Thesis

Co-founder of BitMEX Arthur Hayes warns that U.S. Treasuries may no longer hold their...
Apr, 05, 2025
< 1 min read
by CoinEdition