Bloomberg says stock portfolios should include Bitcoin

The stock market is volatile at this time, but Bloomberg Intelligence’s Mike McGlone, says that the best way to protect your portfolio is to have a mix of gold, government bonds and Bitcoin.

McGlone, who sees Bitcoin heading to a $100,000 valuation, selected these three ‘safe haven assets’ and observed their performance against the S&P 500 Index. His findings showed that his trio of assets have been outperforming the benchmark Wall Street index at least since the start of 2020.

Furthermore, his Bitcoin-Gold-Bonds index took data from the Grayscale Bitcoin Trust (GBTC), SPDR Gold Shares (GLD) and iShares 20+ T- Bond ETF (TLT) and discovered that together these three funds offered investors to gain exposure in the market without requiring to hold/own the physical asset. As the data shows, since March 2020, Bitcoin has risen by almost 1,190%, which is significantly better than spot gold’s 25.93% price spike.

The U.S. 10-year bond yield has jumped from its record low of 0.33% to 1.326% in the same period, but the returns on the government bond are below inflation at 5.4%.

At times, McGlone said Bitcoin did the ‘heavy lifting’ in terms of making a success of an investor’s portfolio. He added that their portfolios “appear increasingly naked” without the leading cryptocurrency even if they remain exposed to gold and bonds. The context for this statement was the performance of Bitcoin, gold, and the 10-year US Treasury yield against the prospect of increased quantitative easing and debt-to-GDP levels.

McGlone sees more capital inflow into the cryptocurrency market in search of the “next-best investment opportunity.” He said that digital assets might represent a “higher-beta potential,” adding that he sees Ethereum going to $5,000 and Bitcoin to $100,000.