Bank of America Advises Clients to Allocate 1–4% of Portfolios to Crypto

Highlights:

• Bank of America now recommends 1 to 4% portfolio allocation in crypto.
• Advisors can actively guide clients using exchange-traded products, avoiding direct crypto custody risks.
• Small crypto allocation is designed to complement traditional investments, not replace them.

Bank of America has started guiding clients to include digital assets in their portfolios. Interest in crypto is growing among big Wall Street firms. The bank’s approach shows a clear shift after years of caution. Starting January 5, advisors at Bank of America Private Bank, Merrill, and Merrill Edge began suggesting limited crypto exposure.

Clients are now advised to put 1 to 4% of their portfolios into Bitcoin and other cryptocurrencies. This is done through approved exchange-traded products in crypto markets. There is no minimum asset requirement, which allows more clients to participate in digital assets with guidance from advisors.

INTEL: Bank of America has begun recommending that clients allocate up to 4% of their portfolios to Bitcoin and other cryptocurrencies

— Solid Intel 📡 (@solidintel_x) January 5, 2026

Bank of America Guides Clients on Small Crypto Allocations

Under the new plan, advisors can take an active role in portfolios. They are no longer limited to just executing trades. This allows clients to get professional help while investing in digital assets. Chris Hyzy, Chief Investment Officer at Merrill, said, “For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” he said.

Bank of America stresses this is a small allocation. It is meant to complement traditional investments, not replace them. Advisors recommend measured entry to avoid risks from crypto price swings. Exchange-traded products make investing easier. Clients can get exposure without managing private wallets, keys, or custody risks that come with direct crypto ownership.

The policy change followed a period when U.S. regulators relaxed certain restrictions. Backing from President Donald Trump for lighter rules reportedly influenced banks to reconsider limits on crypto services. Other firms on Wall Street have reportedly increased their involvement in digital assets.

Even with growing interest, Bank of America has cautioned that significant price fluctuations remain frequent. Merrill noted that adoption may support long-term value, but it does not guarantee results, and speculative hype can push prices far beyond actual usefulness. The bank reminded clients that crypto can move rapidly and unpredictably.

Bitcoin Surges Past $93,000 Amid Geopolitical and Market Shifts

Bitcoin price is back in focus after rising above $93,000. This move followed U.S. military action in Venezuela that reportedly led to the capture of President Nicolas Maduro. As a result, traders shifted attention to price action. Positioning was ignored, while momentum pushed the market higher.

First, a clean slate effect is supporting Bitcoin. According to Matrixport, Bitcoin stayed above $88,000 during the New Year period. At the same time, many traders remained inactive due to holidays. Since October, nearly $30 billion in Bitcoin and Ethereum futures leverage has been cleared. Because of this reset, speculative pressure has eased. As a result, Bitcoin now has more room to rise without crowded trades.

📊Today’s #Matrixport Daily Chart – January 5, 2026⬇️

The Clean-Slate Effect: Why 2026 Could Start on Stronger Footing#Matrixport #Bitcoin #BTC #Ethereum #ETH #Crypto #Derivatives #Futures #OpenInterest #Deleveraging #MarketStructure pic.twitter.com/A9h41rYQuA

— Matrixport Official (@Matrixport_EN) January 5, 2026

Next, Venezuela’s alleged shadow Bitcoin reserve is adding bullish pressure. Reports suggest the country may control up to 600,000 BTC. Reports say Venezuela built these holdings through oil deals and gold swaps using Bitcoin and Tether. After capturing Maduro on January 3, authorities turned their focus to these assets. If seized, officials could freeze them or place them into a U.S. strategic reserve. This would reduce supply and support prices.

Finally, technical signals look stronger. Bitcoin rose more than 2% in 24 hours. Trading volume jumped 30%. It also moved back above the 50-day moving average. Analysts say selling pressure is fading. Further gains may follow if key levels hold.

BTC is waking up in the new year, already up 6.24%.

Broke back above the 50-day moving average for the first time since October. Testing levels not seen since early December.

Sell pressure may be nearing exhaustion.

Need to reclaim and hold the 50-week MA at $101k. https://t.co/PlgD2IbnWX pic.twitter.com/EJVlVPLN6p

— Joe Consorti (@JoeConsorti) January 5, 2026