We have said in the past that BTC can play a role in a portfolio of “traditional” assets as an effective diversifier of performance. Back in 2020 we looked at market data from Q3 2016 to Q3 2020 and put together a presentation which we shared with our investors at the time. A shortened version was also shared with the wider public on our website about a year later (see link: https://www.tyr.capital/the-role-of-bitcoin-as-a-diversifier-in-a-traditional-portfolio/ ) .
Our aim today is to revisit that idea and see if there is still a case for BTC as a diversifier in a traditional portfolio. We have refreshed our dataset of daily data which now covers the period from August 2016 to August 2022.