Matt Hougan, chief investment officer at Bitwise, analysed that a portfolio including both bitcoin (BTC) and gold significantly outperformed the results of a traditional 60/40 portfolio, which allocates 60 percent to stocks and 40 percent to bonds.

On Jan. 14, blockchain media outlet The Block reported that Hougan introduced findings from a joint study by Bitwise chief investment strategist Juan Leon and quantitative research analyst Mallika Kolar in a recent memo sent to clients.

The study found that a portfolio allocating 15 percent each to bitcoin and gold had a Sharpe ratio of 0.679, about three times that of the standard 60/40 portfolio over the past 10 years. The Sharpe ratios for the traditional 60/40 portfolio and a gold-only portfolio were 0.237 and 0.436, respectively.

The analysis also serves to verify recent remarks by hedge fund figure Ray Dalio, founder of Bridgewater Associates. Dalio has proposed allocating a total of 15 percent to gold or bitcoin to prepare for a weaker dollar driven by rising U.S. federal debt and fiscal deficits.

Bitwise used Bloomberg data to analyse in detail four major market downturns in 2018, 2020, 2022 and 2025. During the selloffs, gold played a relatively stable cushioning role, while bitcoin tended to fall more than stocks.

The pattern differed during recoveries. After the 2018 decline, bitcoin rose 78.99 percent the following year in a strong rebound, and after the financial shock during the 2020 COVID-19 pandemic it gained 774.94 percent. Over the same periods, gains in gold and stocks were 111.92 percent and 77.8 percent, respectively, which were relatively limited compared with bitcoin. After the 2022 decline, bitcoin also rebounded more than 40 percent, playing an aggressive return-generating role during the recovery phase.

The recovery phase after the 2025 decline is still under way. As of the time of analysis, stocks rose 38.65 percent from their lows and gold gained 44.79 percent, while bitcoin recovered only 14.04 percent. Bitwise explained that the figures are preliminary because the full one-year analysis period after the decline will not be completed until April 2026.

The Bitwise research team said many view gold and bitcoin as an either-or choice, but the optimal answer shown by historical data is "both". It stressed the need for a combined strategy that considers defence and offence at the same time.