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Bitwise CEO Hunter Horsley has suggested that growing disillusionment with the 60/40 portfolio will benefit Bitcoin and other cryptocurrencies.
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Bitcoin has been hailed as a hedge against risks to the legacy financial system.
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Gaining Bitcoin and cryptocurrency exposure is no easy task.
Investing is a tricky business, especially for individual retail investors who may be unable to access, understand, or keep up with business and financial data.
One of the ways the business of investing has been simplified for many is through the development of the 60/40 portfolio split strategy, which has offered investors a great balance between growth and income for decades. However, there has been growing disillusionment with this traditional split in recent years amid changing market dynamics. One market expert suggests that this will likely benefit Bitcoin and other cryptocurrencies.
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Bitwise CEO Hunter Horsley has suggested that growing disillusionment with the 60/40 portfolio will benefit Bitcoin and other cryptocurrencies.
“60/40 isn’t doing what it used to. This is part of what will lead to the inclusion of more Bitcoin & crypto in portfolios: portfolios are going to be rethought more generally,” Horsley said on Monday.
Horsley said this in response to data from Creative Planning Chief Market Strategist Charlie Bilello, highlighting that the bond market has been in a drawdown since August 2020, about 57 months, its longest such spell on record.
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His sentiments come as the core idea behind the 60/40 split is that bonds are supposed to rise when equities are down and vice versa. But during this bond market drawdown, equities have gone through bull and bear cycles, putting the effectiveness of the traditional split in doubt and making alternative assets like cryptocurrencies potentially more attractive as diversifiers.
