The rivalry between Bitcoin ($BTC) and gold has been ongoing for a long time. Some analysts advocate for Bitcoin, others for gold, while some argue that both should be included in portfolios.
At this point, Citi, one of the most important names on Wall Street, also states that both $BTC and gold should be included in portfolios.
Citi analyst Alex Saunders said that a portfolio allocation of gold and Bitcoin is better than a traditional portfolio mix.
According to CNBC, a study by Citi found that adding gold and Bitcoin together to portfolios has increased the efficiency of bond and stock portfolios over the past 10 years.
According to this research, combining gold and Bitcoin in a portfolio increased returns without increasing risk.
In this context, Citi analyst Alex Saunders stated that investors perform better by holding small amounts of both gold and Bitcoin, rather than preferring one over the other.
“A 5% investment in gold significantly increases portfolio efficiency. Dividing this investment between gold and Bitcoin further enhances performance.”
The Citi analyst concluded by adding that a mixed allocation of gold and Bitcoin has been helpful during bullish periods in bond markets and during downturns driven by fiscal concerns and rising inflation risks.
*This is not investment advice.