Bitcoin and gold allocation outperforms traditional portfolios, backing Ray Dalio’s 15% hedge thesis, Bitwise finds

Bitwise's Chief Investment Officer, Matt Hougan, presented research indicating that a portfolio combining Bitcoin and gold significantly enhances risk-adjusted returns compared to traditional allocations. Specifically, a 15% combined allocation to these two assets achieved a Sharpe ratio nearly three times higher than a standard 60/40 portfolio over the last decade. This analysis supports the recent recommendation by Bridgewater Associates founder Ray Dalio, who suggested a 15% combined allocation to gold or Bitcoin as a hedge against dollar debasement. The research analyzed four major market drawdowns (2018, 2020, 2022, and 2025), finding that gold provided a cushioning effect while Bitcoin experienced steeper initial declines but led subsequent recoveries. For instance, after the 2020 drawdown, Bitcoin rallied 774.94% in the following year. The study concluded that historically, the optimal approach is to hold both assets, as combining them resulted in a Sharpe ratio of 0.679, far exceeding the 0.237 for a 60/40 portfolio.

(Source：The Block)