Data Shows Gold And Bitcoin Work Better Together

For years, gold investors and Bitcoin (BTC) believers have argued over which asset is superior, one side calling Bitcoin “digital gold,” the other seeing it as a speculative bubble. However, the data tells a very different story: gold and BTC aren’t rivals but teammates.

It turns out that when you combine these two popular assets, the results are surprisingly powerful. A long-term performance comparison from 2017 through early 2026 shows that BTC and gold have delivered nearly identical risk-adjusted returns.

Measured using the Calmar ratio (a metric that compares returns against drawdowns), both assets score around 72% on a standalone basis, but combined, an 80% gold / 20% Bitcoin portfolio delivers a 172% Calmar ratio, which is more than double either asset on its own, which means higher returns with lower risk.

The Portfolio That Beats Gold And BTC Alone

Specifically, from 2017 to January 2026, gold delivered a 16% annualized return, Bitcoin delivered a 61% annualized return, and an 80/20 gold-Bitcoin portfolio led to a 30% annualized return, according to the data shared by cryptocurrency market analyst PlanB on January 20.

But the key part is that this blended portfolio had a maximum drawdown of just 18%, compared to 22% for gold and 84% for Bitcoin. So, in addition to earning more, investors who combined gold with Bitcoin also experienced less volatility than either asset alone.

Why Gold And BTC Work So Well Together

Gold brings stability, protecting against inflation, currency debasement, and geopolitical risk, whereas Bitcoin brings upside, adding asymmetric growth potential driven by adoption, scarcity, and global liquidity cycles.

When BTC rallies, it boosts returns, and when it crashes, gold cushions the downside. The result is a smoother equity curve and stronger long-term performance.

The Real Debate Investors Should Be Having

The real question isn’t whether gold is better than Bitcoin or vice versa, but why more investors aren’t holding both. In a world of rising debt, monetary debasement, and financial repression, hard assets are becoming essential. Gold protects wealth, whereas Bitcoin grows it.

Together, they form one of the most resilient portfolios of the modern era. Hence, it appears that Bitcoin and gold aren’t enemies but could be the foundation for the ultimate hedge fund, working best when they’re on the same team.

Meanwhile, BTC is trading at $89,503, up 1% on the day, down 7.6% across the week, and accumulating an increase of 2.2% on its monthly chart, according to the most recent pricing information.

Bitcoin Price Today

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