The post Bitcoin regret is coming for anyone ignoring Coinbase CEO’s 5% rule as banks fight to cap gains appeared on BitcoinEthereumNews.com.

Coinbase CEO Brian Armstrong told Bloomberg at Davos that investors who don’t have at least 5% of their net worth in Bitcoin will “probably be pretty sad” by 2030. Recently, Morgan Stanley’s wealth management division published portfolio guidelines capping crypto exposure at 4% maximum for even its most aggressive growth models. Both used “5%” as their anchor. Neither meant the same thing. The post-ETF era didn’t just mainstream Bitcoin ownership, it turned position sizing into the new battleground. Financial advisors, wealth managers, and compliance officers now treat roughly 5% as a responsible ceiling for a volatile satellite holding. Meanwhile, crypto executives are trying to reframe that same number as a minimum effective dose. The collision isn’t about whether to own Bitcoin. It’s about whether 5% means “cap your risk” or “don’t miss out.” Sub-5% as risk budget Multiple mainstream wealth platforms converged on allocation bands clustered under 5% over the past year, driven not by ideology but by portfolio math. Fidelity Institutional’s advisor-facing research suggests allocations of 2% to 5%, extending to 7.5% for younger investors under optimistic adoption scenarios. The framing centers on downside containment, as Bitcoin’s structural volatility demands position sizing that won’t blow up a portfolio during drawdowns. Morgan Stanley Wealth Management’s October 2025 report gets more granular. It recommends maximum crypto allocations by model: 0% for conservation and income portfolios, 2% for balanced growth, 3% for market growth, and 4% for opportunistic growth. The rationale is explicit risk management, with roughly 55% annualized volatility and potential 70% maximum drawdowns at the 95th percentile. The firm emphasizes quarterly rebalancing to prevent positions from “swelling” silently as Bitcoin rallies, turning a controlled 3% sleeve into an accidental 8% overweight. Bank of America’s chief investment officer said in December 2025 that a modest allocation of 1% to 4% in…

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Filed under: News - @ January 23, 2026 4:23 pm