Diversifying with bitcoin barely increased portfolio volatility, Troy Cross notes

Diversifying with bitcoin barely increased portfolio volatility, Troy Cross notes
Bitcoin raised 60/40 portfolio volatility slightly

Troy Cross highlights analysis from the Wall Street Journal, referencing data shared by Matt Hougan. Cross notes that since 2015, a classic 60/40 portfolio of stocks and bonds has shown annualized volatility of about 9.8 percent. According to the analysis, adding a 1 percent allocation to bitcoin and rebalancing quarterly would have resulted in only a minimal increase in portfolio volatility.

Cross previously observed that Satoshi launched bitcoin publicly with no insider team or pre-mine, and then left the project, unlike other crypto launches. Further details on this launch are provided in his earlier commentary. The approach contrasts with typical crypto projects that involve pre-mined tokens or private allocations.

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