Skip to Content
Fund Spy

How a Little Bitcoin Can Change Your 60/40 Portfolio a Lot

After bitcoin’s recent slide, it may be tempting to buy the dip. Here’s what to consider when thinking about adding it to a balanced portfolio.

This article was updated to correct the omission of a drawdown period in Exhibit 4.

The price of bitcoin has stumbled after skyrocketing over the past year. From mid-April through June 25, 2021, the popular cryptocurrency lost nearly half its value. The CMBI Bitcoin Index, which tracks its spot price, posted a 49.1% loss over the period (though it’s still up more than 11% for the year to date and 240% over the past year as of June 28).