Bitcoin Surges Past $100K, But Should You Invest? Experts Weigh In

The crypto landscape has undergone a remarkable transformation in just 18 months — and with it, the mindset of many investors is evolving, particularly toward bitcoin, the most prominent digital asset in the world.

From tighter regulation to broader institutional adoption, cryptocurrencies are now taking firmer root in the global financial ecosystem. Bitcoin’s price has crossed the $100,000 threshold, Coinbase is now listed on the S&P 500, and stablecoin issuer Circle has gone public. In addition, the Securities and Exchange Commission (SEC) now oversees spot bitcoin and ethereum ETFs, signaling growing regulatory legitimacy.

Adding fuel to the bullish sentiment is the Trump administration’s pro-crypto stance. The U.S. Labor Department recently reversed a 2022 guideline that had warned 401(k) fiduciaries to exercise extreme caution when considering crypto as a retirement plan investment option.

These developments have rekindled the debate: Should bitcoin — or any crypto asset — be a part of your investment portfolio?

Crypto Finds a Place in the Financial Mainstream

For years, financial advisors were hesitant to recommend crypto due to its extreme volatility, lack of regulation, and opaque valuation metrics. But today, many experts argue that a modest allocation to digital assets makes sense — especially for investors seeking portfolio diversification.

“They ought to be cautious. But being cautious doesn’t mean abstinence,” said Ric Edelman, founder of Edelman Financial Engines and the Digital Assets Council of Financial Professionals.

Edelman, a long-time crypto advocate, believes exposure to bitcoin should be measured but intentional. Several years ago, he advised a 1% allocation — an amount low enough to be non-damaging if the asset collapsed, but enough to benefit if the price surged.

Using a hypothetical scenario, Edelman compared returns between a traditional 60/40 stock-bond portfolio and one with a small bitcoin allocation:

1% in bitcoin: Portfolio drops to 6.9% annual return if bitcoin goes to zero; rises to 7.4% if bitcoin hits $1 million.
3% bitcoin allocation: Return falls to 6.8% in worst-case, jumps to 8.2% in best-case.
5% bitcoin allocation: Return dips slightly to 6.7% if bitcoin crashes but climbs to 9% if it soars.

“Bitcoin is unique. It’s not like other digital assets. It’s a store of value and a means of transfer — unlike others which are tied to commercial applications,” Edelman said.

ETFs: A Safer Gateway for Newcomers

For those new to crypto, a spot bitcoin ETF is widely considered the safest entry point. SEC-regulated, transparent, and easily accessible through brokerage accounts, ETFs eliminate the technical risks of self-custody and reduce exposure to scams — a major issue in the crypto space.

“Scams are a big issue in this space,” warned Tyrone Ross, founder of financial planning firm 401 Financial.

Ross and Edelman both recommend starting with bitcoin ETFs rather than investing directly in digital coins — especially for those unfamiliar with wallet security, private keys, or the nuances of blockchain technology.

But It’s Not for Everyone

Despite the momentum, experts caution that crypto is still not suitable for all investors.

“While enthusiasm around crypto adoption and ETFs is encouraging, its value drivers are still evolving,” said Niladri Mukherjee, Chief Investment Officer at TIAA.

Mukherjee urged individual investors to proceed with extreme due diligence, noting that the crypto space remains “opaque and relatively unregulated.”

Volatility is another critical concern. Bitcoin’s price can fluctuate wildly, making it emotionally difficult for many investors to hold during downturns.

“If you can't stomach volatility, crypto is not for you,” Edelman emphasized. “You’re likely to sell when prices fall — which is the worst time to exit.”

To test your risk tolerance, Ross suggests a small experiment: invest an amount equivalent to what you’d spend on a nice dinner, and observe the market behavior for a few months. This can be a valuable educational exercise before making any significant financial commitment.

Stick With Reputable Players

When choosing platforms or funds, investors should prioritize established, reputable institutions with proven infrastructure.

“Work with firms that are well-known and respected. You want transparency, security, and proper reporting,” advised Lazetta Rainey Braxton, founder of The Real Wealth Coterie.

Meanwhile, Trent Porter, a certified financial planner and CPA at Priority Financial Partners, maintains a conservative stance:

“Crypto exposure should match your personal risk tolerance. For most people, keep allocations below 5%. Regulatory risk may have lessened, but market risk remains very real.”

Final Word: Educate Before You Allocate

The future of crypto is still being written — but one thing is clear: it is increasingly part of the modern financial landscape. Whether you choose to invest depends on your risk profile, investment horizon, and willingness to educate yourself.