Analysts recently highlighted the importance of Bitcoin to fulfill the hedging role in portfolio, partially replacing bonds.
Investors who added 10% in Bitcoin (BTC) to their “60/40 portfolio” strategies got a 90% risk-adjusted return in the past 12 months, outperforming gold’s 51% return in the same period.
On a June 16 post via X, the profile Ecoinometrics highlighted BTC’s performance through June 13 and charted the result against total return. A 60/40 portfolio is a strategy in which investors allocate 60% of the portfolio’s assets to equities and 40% to fixed-income instruments.
A pure equities index fund earned about 12% with a risk-adjusted ratio of 0.55. Adding bonds dropped the return to roughly 8% and left the risk metric near 0.45. Reallocating 10 bond points to gold pushed the ratio to 0.62 and lifted the return to 12%.
Meanwhile, the same substitution with Bitcoin drove the ratio past 0.80 and elevated the return to 14%. The publication only counted downside deviation, setting the risk-free rate to zero.
Fidelity sees portfolios evolving
Fidelity Digital Assets researcher Chris Kuiper and Fidelity Investments macro director Jurrien Timmer also highlighted the importance of Bitcoin in modern portfolio construction during a new episode of The Value Exchange.
Kuiper said investors now confront deglobalization, persistent inflation, and policy uncertainty that undermine old allocation playbooks.
“The status quo we’ve known for decades faces a transactional world order.” – Jurrien Timmer
Both argued that portfolios may need fresh stores of value that operate outside sovereign systems.
Kuiper traced bonds’ nominal compound annual growth to just 1% to 2% over the past decade and noted real drawdowns that reached 55%. Timmer recalled 2022 when treasuries “went from being the port in the storm to bringing the storm.”
Those outcomes prompted the pair to consider which macro assets could fill the hedging role that bonds once fulfilled. Their answer pointed to scarce digital assets, with Bitcoin foremost.
Bonds’ role weakening
Kuiper labeled Bitcoin a network asset whose volatility often works in favor of holders. He cited internal modeling that shows price expanding 6x for every 40% rise in the network’s age.
Timmer built on that framework, arguing that global money supply growth should lift demand for non-sovereign scarcity. Both researchers observed that institutional adoption, although difficult to quantify in real-time, continues to deepen liquidity and smooth execution.
Ecoinometrics’ comparison with gold reinforces that view. An allocation identical in size and funded from the same bond sleeve delivered a markedly lower upgrade to risk-adjusted performance despite gold’s long tenure as a hedge.
Bitcoin’s outperformance on both axes of return and downside-adjusted risk aligns with the narrative that the asset class now commands consideration alongside precious metals and inflation-protected securities when investors assemble durable multi-asset portfolios.
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
Commitment to Transparency:The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Important Notice from BusinessmanForbes :The views expressed by our writers are independent and do not represent the opinion of BusinessmanForbes. No information herein constitutes investment advice. BusinessmanForbes does not endorse or guarantee any mentioned projects. Cryptocurrency investment carries high risk. Always perform your own due diligence before making any decisions. BusinessmanForbes is not liable for any resulting financial losses