Citi Study: Bitcoin and Gold Together Outperform Single Asset Allocation in Long-Term Portfolios

Gate News message, April 17 — According to a Citi study, investors achieved better long-term returns by holding both Bitcoin and gold in the same portfolio rather than choosing between them over the past 10 years. The bank found that a 5% allocation to gold already improved portfolio efficiency, and splitting part of that allocation between gold and Bitcoin enhanced performance further.

Citi strategist Alex Saunders noted that this combined approach showed improvements in bond-bull scenarios relative to a traditional 60/40 portfolio and better performance in bear-steepening environments. He added that Bitcoin has recently outperformed gold when bond markets weakened, pointing to fiscal concerns and weaker stocks during the Middle East conflict. Over the past two months, Bitcoin rose 9% while spot gold fell 4%.

Meanwhile, Wells Fargo Securities released a bullish case for gold, predicting the precious metal could climb to $8,000 per ounce by 2027—a more than 66% upside from current prices. The forecast rests on what the bank calls the debasement trade, reflecting central banks’ reduced confidence in fiat currencies and increased preference for neutral stores of value. Wells Fargo’s bear case put gold at $4,000 by end-2027, representing about a 17% downside. Chief equity strategist Ohsung Kwon noted that four of five economic scenarios still point to further debasement, tracking the M2/gold ratio (M2 money supply divided by gold price per ounce).

Separately, data from Glassnode showed Bitcoin funding rates hit their lowest level since 2023, dropping to about -0.005% on a seven-day moving average, even as the asset’s price climbed from the low-to-mid $60,000s to around $75,000 through March and April. Negative funding rates have historically coincided with key turning points: March 2020 (COVID-19 crash), mid-2021 (China mining ban), November 2022 (FTX collapse), 2023 (Silicon Valley Bank crisis), August 2024 (yen carry trade unwind), and April 2025 (Liberation Day sell-off).