TechFlow News, May 5: According to a report by Cointelegraph, research by Fidelity Digital Assets shows that adding Bitcoin allocations to the traditional 60/40 portfolio (60% equities, 40% bonds) would have significantly boosted its annualized return over the past decade (January 1, 2016, to December 31, 2025).
Specific data is as follows:
With 0% Bitcoin allocation: annualized return of 9.44%, annualized volatility of 10.26%, Sharpe ratio of 0.72, and maximum drawdown of -20.64%;
With 1% allocation: annualized return rises to 11.25%;
With 3% allocation: annualized return reaches 14.56%, and the Sharpe ratio improves to 1.01;
With 5% allocation: annualized return is 17.55%;
With 7% allocation: annualized return is 20.30%;
With 10% allocation: annualized return reaches 24.09%, though annualized volatility also climbs to 18.41%, and maximum drawdown widens to -26.72%.
