Rethinking Bitcoin’s Role in a 60/40 Portfolio

Bitcoin’s volatility has come down. Its returns haven’t. That changes the allocation math.

Bitcoin isn't as volatile as it used to be. That might sound like a temporary phase, but this “phase” has been five years in the making.

It’s time to take that shift seriously and consider what it means for Bitcoin’s role in standard portfolio construction.

In this issue, we approach the question through the lens of volatility versus return, by comparing Bitcoin to another top-performing hard asset of the past few years: gold.

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Rethinking Bitcoin’s Role in a 60/40 Portfolio

The Takeaway

Bitcoin’s volatility has declined significantly over the past five years, putting it in the same risk range as large-cap growth stocks like Nvidia. That shift makes it easier to model and size within traditional portfolios.