River: Long-term investors may consider up to 10% Bitcoin allocation

A report by River, authored by Sam Baker, suggests that the traditional 60/40 stock-bond portfolio is no longer sufficient and recommends that long-term investors allocate up to 10% to Bitcoin. The report notes that while the 60/40 portfolio provided 5% to 15% annual returns from 1980 to 2020, factors such as inflation, debt, and shifting correlations have changed the landscape. Simulations over the past decade indicate that replacing a portion of bonds with 10% Bitcoin increased the portfolio's terminal value from $25,364 to $60,595, with only a 6 percentage point increase in maximum drawdown.