BlackRock Flags Bitcoin as 60/40 Strategy Weakens

TLDR

  • BlackRock said advisors should consider Bitcoin, gold, and liquid alternatives as portfolio diversifiers.
  • The firm reported that stock and bond correlations have remained elevated since 2020.
  • BlackRock found that Bitcoin had a 0.53 correlation with the S&P 500 from 2022 to early 2026.
  • The report showed that gold recorded a 0.19 correlation with equities during the same period.
  • BlackRock said Bitcoin and gold had a 0.10 correlation, which may support combined allocations.

BlackRock has urged financial advisors to reassess diversification strategies as stock and bond correlations remain elevated. The firm said traditional 60/40 portfolios have lost reliability since 2020 due to rising volatility and tighter asset relationships. In a May 6 report, BlackRock outlined how Bitcoin, gold, and liquid alternatives may help diversify multi-asset portfolios.

Bitcoin Emerges as Equity-funded Diversifier

BlackRock published its report titled “How to diversify with bitcoin, gold and alternative investments” on May 6. The firm stated that geopolitical and economic shocks have reduced the effectiveness of traditional diversification tools. It said bonds no longer provide the same hedge against equity drawdowns as in the 2010s.

The report showed that Bitcoin posted a 0.53 correlation with the S&P 500 from 2022 through the first quarter of 2026. By comparison, gold recorded a 0.19 correlation with equities during the same period. BlackRock said the iShares Bitcoin Trust ETF has displayed lower equity correlation than many traditional assets.

BlackRock described Bitcoin as a “unique diversifier” due to its distinct return drivers. The firm linked Bitcoin’s long-term adoption to concerns about monetary stability and US fiscal sustainability. It also connected adoption trends to geopolitical and political stability factors.

The asset manager reiterated that a 1% to 2% Bitcoin allocation may suit multi-asset investors. It said allocations above that range could sharply raise overall portfolio risk. BlackRock stated that advisors should fund Bitcoin exposure from equities due to its volatility profile.

Gold and Liquid Alternatives Strengthen Portfolio Mix

BlackRock highlighted gold as a complementary asset within diversified portfolios. The firm reported that Bitcoin and gold showed a 0.10 correlation from 2022 through early 2026. It said combining both assets could enhance diversification benefits.

The report explained that gold maintained a lower equity correlation than Bitcoin during the measured period. However, BlackRock said the two assets together may provide broader risk dispersion. It emphasized that the low correlation between them supports combined allocations.

BlackRock also promoted liquid alternative strategies within its Target Allocation with Alternatives models. The firm said these strategies aim to reduce portfolio risk without sacrificing upside potential. It stated that most alternative allocations draw funding from fixed-income positions.

However, BlackRock treated Bitcoin differently within its allocation framework. The firm said Bitcoin requires equity funding due to higher volatility compared to gold and alternatives. It added that even small allocations can influence overall portfolio characteristics.

Bitcoin traded near $79,900 at press time after falling 2% on the day. The cryptocurrency had briefly climbed above $82,000 earlier on Wednesday before losing momentum. Traditional markets also eased after posting gains over the previous month.

The post BlackRock Flags Bitcoin as 60/40 Strategy Weakens appeared first on Blockonomi.

Commentaires

Enregistrer un commentaire

Posts les plus consultés de ce blog

KuCoin Announces Decentralized Wallet: Web3 & NFTs the Aim

Image
Kucoin , In an effort to tap into the Web3 and NFT space, the exchange is launching a decentralized wallet integrated with cross-chain swapping feature. The crypto exchange giant KuCoin today announced its launch of a brand-new decentralized wallet as it moves towards Web3 and decentralized applications. KuCoin Sees the Future Users are now able to connect with the KuCoin Wallet, which is currently available in the web-based exchange platform. The mobile-based platform is still in the works and is set to launch in the near future. The platform is integrated into the KuCoin ecosystem and also supports cross-blockchain implementation. In addition, it is a one-stop place to execute various activities of a normal wallet such as buy, sell, trade, and send multiple cryptocurrencies from Bitcoin (BTC), Tether (USDT), Binance (BNB), USDC (USD) and other tokens. A New Option for a New Web KuCoin wallet, positioned as a self-custodial wallet (non-custodial wallet), enables consumers sol...
Lire la suite

Shiba Inu Update: ShibaDAO Launches Amid SHIB Price Decline

Image
TLDR: ShibaDAO introduces on-chain staking and off-chain voting for SHIB ecosystem governance. SHIB has dropped over 11% this week and remains 85% below its all-time high. DAO Factory enables users to create custom DAOs tied to DeFi, gaming, and public goods. Four DAOs now manage events, upgrades, disputes, and development within Shiba Inu’s network.   Shiba Inu’s ecosystem has introduced a new governance system, ShibaDAO, even as the SHIB price continues to slip .  The DAO framework aims to shift decision-making power from developers to the wider community. This launch represents a structural change across the Shiba Inu network, bringing staking, voting, and delegation tools to holders.  Meanwhile, SHIB has seen sharp price declines, underperforming against major assets like Bitcoin and Ethereum amid a major market dip. Despite this, community activity appears to be intensifying with multiple DAOs already operational. ShibaDAO Launch Marks Governance Milestone The @Shi...
Lire la suite

Cloud Crypto Mining: A Path to Passive Income with CGMD Miner

Image
The modern world is constantly changing and evolving, offering new opportunities. With the increasing popularity of cryptocurrencies, more and more people are looking to make money. One of the innovative methods that is gaining attention and popularity is cloud crypto mining, which provides access to passive income with a small initial investment. What is cloud mining? Cloud mining is an advanced method that utilizes rented cloud computing power to mine cryptocurrencies like Bitcoin. The primary advantage of this approach is that everything happens remotely, without the need to invest in expensive mining equipment. Instead, users can take advantage of companies that offer cloud mining services to support their income-generating efforts. This transition offers numerous benefits, including reduced equipment maintenance costs and no direct energy expenses. How to get started? For those looking to embark on this exciting venture, let’s outline the key steps to get started: Step 1: C...
Lire la suite