Bitcoin Is Being Used For Portfolio Diversification — Market Talk

Bitcoin's rise to record highs is being helped by investors diversifying their portfolios amid uncertainties over U.S. policies and geopolitics, AJ Bell's Dan Coatsworth says in a note. "While bitcoin is driven purely by speculation, interest continues to grow in the cryptocurrency," he says. There are now various investment funds that track bitcoin's price, giving investors more choice in their exposure to the cryptocurrency and making it easier to take a position. However, cryptocurrencies are extremely volatile, he says. They involve a huge amount of guesswork and are the top of the risk spectrum for trying to make money. Bitcoin rises 2.5% to $122,057 after earlier hitting a high of $123,153, according to LSEG. (renae.dyer@wsj.com)