In a 5% yield environment, I would keep Bitcoin at around 5% of a diversified portfolio, perhaps up to 10% for someone with higher risk tolerance.
The hurdle rate has changed. When Treasuries offer 5%+, Bitcoin must justify its volatility against an attractive risk-free alternative. Recent moves show that rising yields and a stronger dollar can still put significant pressure on BTC.
That said, I would not cut Bitcoin to zero. Institutional participation has matured, and ETF flows increasingly provide another source of demand. EY’s 2026 survey found 73% of institutional respondents planned to increase digital-asset allocations this year.
So for me: 5% BTC, not 50%. Enough exposure to benefit if adoption continues, but small enough that a crypto drawdown does not dominate the portfolio. At 5% Treasury yields, diversification and opportunity cost matter much more.
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