By Teeka Tiwari
If you’re a longtime reader, you know one of the reasons I love owning bitcoin is because it improves your overall portfolio performance.
For most of its existence, bitcoin has been uncorrelated to the markets. In other words, its movements aren’t tied to the stock market or overall business cycles.
And research has backed that up…
For example, a 2020 study by Bitwise Asset Management concluded that allocating 1–10% of your portfolio to bitcoin gives better risk-adjusted returns than holding just stocks and bonds.
That’s why I call bitcoin Wall Street’s “Holy Grail.”
By that, I mean it’s an asset that performs well under diverse market conditions while lowering volatility across your entire portfolio.
But recently, we’ve seen bitcoin start to move in the same direction as stocks – particularly high-growth tech stocks.
Since the beginning of the year, the market has treated these two assets as one and the same…