Bitcoin Allocation Depends on Portfolio Characteristics

Crypto investors have long debated how much of their portfolios to allocate to Bitcoin. Chief Investment Officer at Lionsoul Global, Gregory Mall, has put this question to the test through backtesting.

Mall examined a hypothetical 60/40 portfolio split between Bitcoin and other assets over bull, bear, and sideways market regimes. The results showed that a straight Bitcoin position diverged from a large-cap basket and a trend-managed sleeve.

The study found that the way investors hold Bitcoin can have as much of an impact as how much they hold. Mall's findings suggest that investors should consider the characteristics of their portfolios, including risk tolerance and investment horizon, when determining their Bitcoin allocation.