[Fidelity Research: Bitcoin Allocation Can Enhance Traditional Portfolio Returns]
According to Cointelegraph, research by Fidelity Digital Assets shows that adding Bitcoin to a traditional 60/40 portfolio (60% stocks, 40% bonds) significantly improves annualized returns over the past decade. With 0% Bitcoin allocation, the annualized return was 9.44%, annualized volatility 10.26, Sharpe ratio 0.72, and maximum drawdown -20.64%. With a 1% allocation, the annualized return increased to 11.25%; with a 3% allocation, the annualized return reached 14.56, and the Sharpe ratio improved to 1.01; with a 5% allocation, the annualized return was 17.55%; with a 7% allocation, the annualized return was 20.30%; and with a 10% allocation, the annualized return soared to 24.09, while annualized volatility rose to 18.41 and maximum drawdown expanded to -26.72%.