The Bitcoin (CRYPTO: BTC) price is up 0.5% overnight, currently trading for US$65,168.
While that's a modest 24-hour move, the world's first and largest crypto by market cap remains notoriously volatile.
Here's what I mean.
It was only back on 7 October that the Bitcoin price soared to a new all-time high of US$126,198.
Now that was obviously good news to crypto investors who bought in at lower levels. In April 2025, for example, you could have bought the token for less than US$80,000.
But since that highwater mark, the Bitcoin price has crashed a painful 48.5%.
So, can the crypto still help you diversify your investment portfolio?
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With a volatile Bitcoin price, is the crypto still good for diversity?
According to a January survey conducted by the Urban Institute, 45% of US crypto owners said that they use cryptocurrency primarily to diversify their investment portfolios.
This was the number one reason investors gave for buying crypto.
Now, the idea behind a properly diversified portfolio is to help smooth your returns over time. So, if one particular set of investments hits a temporary downtrend, that will ideally be offset by other investments that are rising.
"Cryptocurrency tends to be a diversifier, so over the long-term it can be a good complement to more traditional investments," Jim Ferraioli, director of crypto research and strategy at the Schwab Center for Financial Research said (quoted by CNBC).
