Citi: Split 5% Gold Allocation With Bitcoin for Better Returns
A mixed allocation of gold and bitcoin produces stronger results than gold alone across multiple market cycles, according to Citi analysis. Bitcoin climbed 23% from its February low near ₱3,602,155 ($60,000) while gold declined 4% over two months.
Key Takeaway
Mixing bitcoin with gold in a 5% allocation beats gold-only portfolios across multiple market cycles.
Citi analyst Alex Saunders says a 5% portfolio allocation split between gold and bitcoin produces stronger results than gold alone.
The tactical appeal of a combined allocation lies in balancing gold's relative popularity with bitcoin's growth characteristics, Saunders said in a report cited by CNBC. The mixed allocation improves returns in bond bull markets and provides resilience during bear-steepening cycles tied to fiscal concerns and rising inflation risk.
Bitcoin climbed 23% from its February low near ₱3,602,155 ($60,000) while gold declined 4% over the past two months. Traders eye ₱4,502,693 ($75,000) to ₱4,562,729 ($76,000) as a critical resistance zone for bitcoin, with a breakout potentially opening a path toward $80,000.
If bitcoin fails to clear resistance, traders see downside toward the low $70,000s. Negative funding rates on perpetual futures persisted for six weeks before the recent rally, signaling extended bearish positioning that has now begun to unwind.
Citi previously projected bitcoin would reach $112,000 by year-end in a March report, down from a December forecast of $143,000. The bank's global head of macro strategy Dirk Willer emphasized renewed spot bitcoin ETF flows as critical for price recovery, projecting ₱900.54 billion ($15 billion) in inflows over 12 months.
This article was written based on reporting from Bitcoin Magazine.
