Bitcoin ($BTC) and gold have long been getting wider attention in discussions over the smarter investment option. While Bitcoin ($BTC) serves as a high-risk, high-reward crypto asset and gold often appears as a safe haven, the analysts point out that their combination may offer superior returns. As per the data from PlanB, the risk/return profile of Bitcoin ($BTC) and gold is almost identical in the case of measurement by the Calmar ratio. Additionally, a portfolio merging 20% Bitcoin ($BTC) with 80% gold has shown decreased risk and notable increased returns in comparison with holding just gold.
Bitcoin and Gold 20%/80% Portfolio Strategy Delivers Ideal Risk-Adjusted Returns
The market data discloses that both Bitcoin ($BTC) and gold have evolved across diverse market cycles. In this respect, gold steadily surged from $1,250 back in 2017 to nearly $4,700 at the start of 2025, providing a geometric profit of 16% with a peak drawdown of twenty-two percent. In the meantime, Bitcoin ($BTC) spiked from up to $1,250 to the staggering $90,000, presenting a geometric profit of 61% but incurring substantial volatility with almost 84% drawdown.
Keeping this in view, when merged into a single portfolio comprising 20% Bitcoin ($BTC) and 80% gold, investors experienced a balanced outcome. This resulted in a nearly a 30% geometric profit and just 18% drawdown while the Calmar ratio hit $172%. Such an excellent strategy underscores the significance of diversification for the optimization of risk-adjusted performance.
Blend Strategy Serves as Compelling Solution for Long-Term Capital Preservation
According to PlanB, the remarkable results of Bitcoin ($BTC) and gold’s merger in the crypto portfolio challenge the long-held narrative of choosing one between these two assets. Thus, the investors looking for long-term capital preservation, the 20/80 Bitcoin-gold blend provides a compelling strategy. Moreover, by combining innovation with stability, this model delivers a blueprint for forward-looking, resilient investment strategies.
