Bitcoin Sizing Study Reveals Optimal Allocation for 60/40 Portfolios

Gregory Mall of Lionsoul Global recently backtested Bitcoin in a 60/40 portfolio to determine the optimal sizing for crypto risk.

In his study, Mall tested adding Bitcoin at 2.5% and 10% weights with monthly rebalancing across January 2021 to March 2026.

The results showed that adding Bitcoin lifted returns and Sharpe ratios in strong crypto years, while the traditional core cushioned weaker ones.

Mall also repeated the exercise with a rules-based trend sleeve in place of spot Bitcoin, which moderated extreme years in both directions and improved drawdown behavior at the cost of some upside.