A new study released by Bitwise on Tuesday demonstrates that portfolios combining Bitcoin and gold have dramatically outperformed conventional asset allocations over the last decade. Using Bloomberg data, the research team simulated four distinct portfolios: a classic 60% equity / 40% bond mix, a gold-only portfolio, and a hybrid containing both Bitcoin and gold at a 15% weight.
Sharpe Ratio Showdown: 0.679 vs 0.237
The traditional 60/40 portfolio posted a Sharpe ratio of just 0.237, while the gold-only approach reached 0.436. The hybrid portfolio, however, nearly tripled that figure to 0.679 — meaning significantly higher risk-adjusted returns. The analysis was led by Bitwise CIO Matt Hougan, Senior Investment Strategist Juan Leon, and Quantitative Analysis Lead Mallika Kolar.
Stress-Tested Across Four Drawdowns: Gold Shields, Bitcoin Surges
The team examined four major downturns — 2018, 2020, 2022, and 2025. In 2018, when equities fell 19.34%, gold rose 5.76%, acting as a buffer. Bitcoin suffered sharper declines during each crisis but rebounded strongly afterward: ~79% after 2018, a stunning 774%+ after 2020. The 2025 recovery is still unfolding; Bitwise data tracked through April 2026 shows gold and stocks already gaining momentum, while Bitcoin's performance remains under observation.
Ray Dalio's 15% Thesis Put to the Test
The study specifically stress-tested Ray Dalio's recommendation that investors allocate 15% of their portfolio to Bitcoin or gold as a hedge against dollar debasement driven by rising federal debt and deficits. Results support his view: the hybrid approach provides both defense (gold's stability during downturns) and offense (Bitcoin's explosive recoveries). The research concludes: “Rather than choosing between gold or Bitcoin, the two should be considered together.”