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Investors are moving away from the 60/40 strategy

2 min read

Is BTC such a strong asset that it can beat the stock market after gold? An issue that is currently being taken up by investors. The truth is that BTC is no longer just a game or a pyramid, as it was initially called by skeptics. It is a digital currency and especially a store of value. This is a time when almost everyone wants to own some form of cryptocurrency.

How is BTC perceived?

If you are thinking about investing with minimal risk, you must have come across strategy 60/40. It is one of the most widespread investment strategies, in which your assets are divided into a ratio of 60% of shares and 40% of bonds. This reduces your risk and keeps your portfolio secure.

However, the current time and the mainstream are pushing this type of investment strategy into change. And we can owe these changes to the cryptocurrencies led by BTC. It has become one of the most sought-after assets among investors.

portfolio growth 60/40.  Source: Ecoinometrics
Portfolio growth 60/40. Source: Ecoinometrics

BTC provides a high return, and in the coming years its price is expected will rise to about $ 400,000. Another important fact is that BTC earns much more than the bonds themselves, which make up 40% of the portfolio. This is one of the reasons why investors agree that their portfolio must contain at least 5% BTC.

Risk reduction when including BTC in the portfolio.  Source: EcoinometricsRisk reduction when including BTC in the portfolio. Source: Ecoinometrics

Of course, there is also a degree of speculation among investors. However, this needs to be addressed. Doubts have been in the world of cryptocurrencies from the beginning, and they probably won’t go away. However, we are probably only at the beginning of the introduction of cryptocurrencies into the mainstream. However, it is to be expected that what will happen if the BTC ETF enters the market? Will all investors deviate from stocks and bonds and switch to crypto? If that happens, there will probably be nothing to stop BTC and altcoin from making their way into the financial mainstream.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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