<p>Bengaluru: With global market sentiment remaining uncertain, investors are now looking to diversify their portfolio instead of sticking to just equities. Though crypto is showing strong resilience, experts said it should not be viewed as a panic substitute for equities, and it should be seen as a measured diversification asset within a disciplined portfolio.</p><p>Indian equities have come under pressure as the Nifty 50 fell about 4 per cent over four sessions before recovering modestly on May 14. The macro backdrop is clearly risk-heavy, and the rupee touched a record low of 95.9575/$. All the while, elevated crude prices and foreign outflows continued to weigh on Indian assets, said Vikram Subburaj, CEO, Giottus.com.</p><p>Bitcoin, however, is not immune to the same risk cycle. It was trading around $79,765. The asset was down 1.68 per cent over 24 hours. However, the market capitalisation stood at $1.6 trillion. That is why investors should treat crypto as a high-conviction, high-volatility allocation rather than a guaranteed hedge against a falling stock market, he added.</p><p>Investors should avoid looking at crypto as a replacement for equities or traditional assets. The more mature way to view crypto today is as an emerging alternative asset class within a diversified portfolio; something that can add alpha alongside existing investments. </p><p>Investors can allocate 2-4 per cent of their portfolio to crypto to have an edge, since its volatility and risk-to-reward ratio are also improving in a positive direction, said Ashish Singhal, Co-founder, CoinSwitch.</p>.Crypto asset: Karnataka shows highest conviction in blue-chip assets.<p>According to experts, Bitcoin’s direction depends on whether it can defend the $78,200 - $79,100 on-chain cost-basis zone. On Thursday evening, Bitcoin was trading at above $79,900.</p><p>"Looking ahead, regulatory developments like the proposed CLARITY Act could further improve market sentiment. At the same time, on-chain data shows strong network participation in Bitcoin, with daily Bitcoin transactions growing by 116 per cent in May, pointing towards further upward momentum in the coming days," said Akshat Siddhant, Lead quant analyst, Mudrex.</p><p>Bitcoin, in particular, has witnessed growing institutional participation and broader global adoption over the years, reinforcing its position as a maturing digital asset within the wider financial ecosystem. As global liquidity conditions improve and adoption continues to expand, the long-term outlook for the crypto ecosystem remains closely tied to innovation, real-world utility, and increasing mainstream participation. </p><p>Investors globally are gradually integrating large-cap digital assets such as Bitcoin and Ethereum into their portfolios as part of a broader strategy aimed at enhancing risk-adjusted returns. This is also reflected in the growing shift from short-term trading behaviour toward long-term holding among investors, said Sumit Gupta, Co-founder at CoinDCX.</p><p>Gupta said that at CoinDCX, they encourage investors to prioritise education, assess their risk appetite carefully, and invest responsibly within a regulated framework. </p><p>"Digital assets should be viewed as a complementary component of a diversified portfolio rather than a replacement for traditional investments. The focus should remain on gradual participation, prudent risk management, and staying informed as the digital asset ecosystem matures in India and globally," he added.</p>
<p>Bengaluru: With global market sentiment remaining uncertain, investors are now looking to diversify their portfolio instead of sticking to just equities. Though crypto is showing strong resilience, experts said it should not be viewed as a panic substitute for equities, and it should be seen as a measured diversification asset within a disciplined portfolio.</p><p>Indian equities have come under pressure as the Nifty 50 fell about 4 per cent over four sessions before recovering modestly on May 14. The macro backdrop is clearly risk-heavy, and the rupee touched a record low of 95.9575/$. All the while, elevated crude prices and foreign outflows continued to weigh on Indian assets, said Vikram Subburaj, CEO, Giottus.com.</p><p>Bitcoin, however, is not immune to the same risk cycle. It was trading around $79,765. The asset was down 1.68 per cent over 24 hours. However, the market capitalisation stood at $1.6 trillion. That is why investors should treat crypto as a high-conviction, high-volatility allocation rather than a guaranteed hedge against a falling stock market, he added.</p><p>Investors should avoid looking at crypto as a replacement for equities or traditional assets. The more mature way to view crypto today is as an emerging alternative asset class within a diversified portfolio; something that can add alpha alongside existing investments. </p><p>Investors can allocate 2-4 per cent of their portfolio to crypto to have an edge, since its volatility and risk-to-reward ratio are also improving in a positive direction, said Ashish Singhal, Co-founder, CoinSwitch.</p>.Crypto asset: Karnataka shows highest conviction in blue-chip assets.<p>According to experts, Bitcoin’s direction depends on whether it can defend the $78,200 - $79,100 on-chain cost-basis zone. On Thursday evening, Bitcoin was trading at above $79,900.</p><p>"Looking ahead, regulatory developments like the proposed CLARITY Act could further improve market sentiment. At the same time, on-chain data shows strong network participation in Bitcoin, with daily Bitcoin transactions growing by 116 per cent in May, pointing towards further upward momentum in the coming days," said Akshat Siddhant, Lead quant analyst, Mudrex.</p><p>Bitcoin, in particular, has witnessed growing institutional participation and broader global adoption over the years, reinforcing its position as a maturing digital asset within the wider financial ecosystem. As global liquidity conditions improve and adoption continues to expand, the long-term outlook for the crypto ecosystem remains closely tied to innovation, real-world utility, and increasing mainstream participation. </p><p>Investors globally are gradually integrating large-cap digital assets such as Bitcoin and Ethereum into their portfolios as part of a broader strategy aimed at enhancing risk-adjusted returns. This is also reflected in the growing shift from short-term trading behaviour toward long-term holding among investors, said Sumit Gupta, Co-founder at CoinDCX.</p><p>Gupta said that at CoinDCX, they encourage investors to prioritise education, assess their risk appetite carefully, and invest responsibly within a regulated framework. </p><p>"Digital assets should be viewed as a complementary component of a diversified portfolio rather than a replacement for traditional investments. The focus should remain on gradual participation, prudent risk management, and staying informed as the digital asset ecosystem matures in India and globally," he added.</p>