Analysis: Adding a small amount of Bitcoin to the 60% equity / 40% bond portfolio can reduce volatility

The analysis shows that although the long-term correlation between Bitcoin and traditional asset classes is still low, in the short term, the market sell-off triggered by COVID-19 has increased the correlation between Bitcoin and traditional asset classes. Especially during the sell-off period, the correlation with gold increases, which may imply that Bitcoin's hedging position is increasing. In addition, adding a small amount of bitcoin to the 60% equity / 40% bond hybrid portfolio helps reduce portfolio volatility during the recent market sell-off.