3% Bitcoin Beat Cash & Funds Since 2020
A 3% Bitcoin allocation has outperformed cash and money market funds since 2020.
- Small Bitcoin allocation outperformed cash returns
- BTC showed superior performance over low-risk assets
- Highlights Bitcoin’s potential as a portfolio hedge
A Small Bitcoin Allocation, Big Results
Since 2020, investors who allocated just 3% of their portfolio to Bitcoin have seen better returns than those who stuck with cash or money market funds. This insight reveals the power of even a modest Bitcoin allocation when included as part of a diversified investment strategy.
Bitcoin has consistently outperformed traditional safe-haven assets over the past few years. While cash and money market funds offer low volatility and stable returns, they have struggled to keep pace with inflation and rising asset prices. In contrast, Bitcoin’s long-term trend has rewarded those willing to take on a bit more risk.
Why a 3% Allocation Matters
The idea behind a 3% allocation is simple: reduce exposure to high volatility while still gaining upside from Bitcoin’s growth potential. According to several portfolio analyses, this level of exposure helps cushion against inflation and adds an asymmetric return profile, without heavily increasing portfolio risk.
This strategy has especially paid off during Bitcoin bull runs, like in 2020–2021 and more recently in 2024–2025. Even with Bitcoin’s volatility, its long-term trajectory has offered a return that traditional cash-like instruments could not match.
The Case for Including Bitcoin
This data point strengthens the argument that Bitcoin can serve as a modern portfolio hedge, especially in inflationary environments. As central banks continue navigating monetary policy, more investors are considering crypto—not to replace traditional assets, but to complement them.
Even a minimal allocation, like 3%, can make a significant impact over time—an insight that’s hard for forward-thinking investors to ignore.
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