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Recently, financial markets have been unpredictable, raising the question of whether to include both gold and Bitcoin in the portfolio in 2025. That year, both reached historic highs, but their differences also provide an excellent opportunity for balanced investing.
Edmund Moy, Senior IRA Strategist at U.S. Money Reserve, points out that while Bitcoin and gold may seem like competitors, their correlation is actually not strong. This is a compelling reason for investors to hold both in an uncertain future.
Even a diversified portfolio cannot completely eliminate risk, especially given Bitcoin's high volatility. Nationwide Investment Research Director Mark Hackett suggests that gold can hedge against the risk of dollar depreciation, while Bitcoin is suitable for investors with a higher risk tolerance and a longer investment horizon.
The recommendation from BlackRock and Globalt Investments is that in a traditional multi-asset portfolio, the allocation for Bitcoin should be between 2% and 5%, while the allocation for gold should be around 10%.
🌟 Gold and Bitcoin each have their strengths, and in 2025, balancing both allocations may be key to navigating market volatility and uncertainty.