A Citi report indicates that holding Bitcoin alongside gold produces superior returns compared to traditional bond-equity mixes.
Citi has published a new report, cited by CNBC, in which analysts argue that holding gold and Bitcoin simultaneously can improve portfolio performance compared to traditional allocations based on bonds and equities. Analyst Alex Saunders indicated that a 5% allocation to gold improves portfolio efficiency, but that splitting that exposure between gold and Bitcoin yields even stronger results.
According to the analysis, the combination of the two asset classes improves returns during rising bond markets and offers resilience in bear-steepening cycles linked to fiscal concerns and the risk of rising inflation. Citi highlighted that Bitcoin tends to outperform gold during periods of bond market weakness, pointing to the asset’s recent gains during phases of geopolitical stress and equity market turbulence. Over the past two months, Bitcoin has posted a 9% gain, while spot gold has recorded a 4% decline.
Saunders emphasized that the tactical appeal of a combined allocation lies in the balance between gold’s relative popularity and Bitcoin’s growth characteristics. Bitcoin’s price has surpassed the $75,000 threshold – a move that markets interpret not only as a technical breakout, but as a signal of change in the way the asset is valued in a context of growing geopolitical tensions.
After bouncing back from a low of around $60,000 in February, Bitcoin has gained approximately 23%, holding a solid position even as traditional markets came under pressure. Traders currently view the $75,000–$76,000 range as a critical resistance zone: a breakout could pave the way toward $80,000, while a failure could push the price back toward $70,000 or below.
Derivatives data offers an additional layer of insight: funding rates on perpetual futures have remained negative for over six weeks, signaling persistent bearish positioning despite the price rally. Historically, this combination of negative funding, rising open interest, and price stability has preceded bullish breakouts, when short sellers are forced to cover their positions.
On a narrative level, Bitcoin is no longer perceived exclusively as a “digital gold” hedge or as a high-risk proxy for the tech sector. The asset is increasingly being priced as a geopolitical instrument, with its ability to operate outside traditional financial infrastructure reinforcing its role as a neutral settlement medium in global trade.
