- According to Citi, a small mix of gold and Bitcoin has generated more returns for portfolios than the standard 60/40 mix.
- Combining gold and Bitcoin in an investment portfolio has increased returns without increasing risk.
According to Exploration Citi Bank, over the past 10 years Bitcoin and gold produced higher returns for investors over the long term when they were in the same portfolio rather than competing for space.
A 5% allocation to gold clearly improves portfolio performance. Splitting this allocation between gold and Bitcoin further increases returns. said Alex Saunders of Citi.
This perception arose because BTC began to be perceived less as a hedging instrument and more as a risky asset, posing a practical question for investors about how to allocate funds within a portfolio. Therefore, a small mix of gold and Bitcoin yielded higher returns for portfolios than the standard 60/40 allocation.
This combined approach has shown superior performance in bond bullish scenarios compared to a traditional 60/40 portfolio, and also higher returns in a tightening bearish environment that has coincided with fiscal policy concerns and rising inflation risk since 2020, which we expect to persist. wrote Saunders.
Citi also noted that BTC has recently outperformed gold when bond markets weaken or become volatile. The bank cited financial problems and falling stock prices amid the ongoing conflict in the Middle East.
Over the past two months Bitcoin rose by 9%, while the spot price of gold fell by 4%.
At the time of writing, the price of Bitcoin is close to approached to the $78,000 mark, showing a daily increase of 5%.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making investment decisions. Read the editorial policy. https://happycoin.club/about/