The rapid rise of digital currencies, particularly Bitcoin, Ethereum, and a range of other cryptocurrencies, has sparked significant interest in their potential role in modern investment portfolios. Traditionally, investors have relied on assets such as stocks, bonds, and commodities for portfolio construction and risk management, guided by principles of Modern Portfolio Theory (MPT). However, with the emergence of cryptocurrencies, the dynamics of portfolio diversification and risk mitigation strategies are being re-evaluated. This paper seeks to explore the role of cryptocurrencies in enhancing portfolio diversification by integrating them with traditional equity and bond assets within the MPT framework.